Gabriel Felbermayer, head of the economic research institute, warns of rising energy prices driven by Middle East conflicts. This follows the Austrian National Bank lowering its growth forecast to 0.5 percent while adjusting inflation expectations to 3.0.
Current data shows gas prices recently reached 80 euros per megawatt hour, impacting electricity costs for half of the year. While gas storage is 67 percent full, Wifo previously projected 0.9 percent growth for 2026 and annual inflation at 3.0 percent.
Political tensions rise as FPÖ spokesperson Paul Hammer demands CO2 tax cuts, though Felbermayer opposes margin interventions for oil firms. Energy Minister Wolfgang Hattmannsdorfer oversees the sector as IHS maintains a 3.2 percent inflation forecast.