Once again, daily life became more expensive. The micro basket, or out-of-the-pocket inflation measure, which represents typical daily shopping purchases such as food, newspapers or coffee in a café, increased by 0.2% year-over-year in November. The mini basket, containing not only weekly purchases but also fuels, rose by 4.5% year-over-year in November compared to 4.9% in October.
According to the harmonised European definition, headline inflation came in at 2.3% YoY, a slight drop compared to 2.4% YoY in October.
All in all, Austrian consumers probably have to deal with a harmonised inflation rate of 2.1% for the year. With Christmas around the corner, spending for leisure, culture, and restaurants will not abate. Yet, with the family bonus kicking in in January, a robust job market, and an ongoing favourable environment, private consumption expenditure remains on a stable basis, contributing to GDP growth also in the new year.