Moderate Acceleration of Inflation

The slowdown in inflation which has prevailed during most of the eighties, has come to a halt. In almost all OECD countries prices are rising at a faster pace since mid-1988. The main reason is the rebound in the prices of oil and of other raw materials. The high degree of capacity utilization is also conducive to price increases. In Austria, the momentum of inflation has so far accelerated moderately. Price hikes for industrial commodities and energy are counterbalanced by stable food prices.