A new study by Austria’s Chamber of Labor (AK) found that groceries in Austria are significantly more expensive than in Germany, with some identical products costing up to 93 percent more. According to the study, identical food items cost an average of 26 percent more in Austria than in Germany. The AK criticized what it called the “Austria surcharge” on consumer goods.
Among the products with the largest price differences were a specific brand of ice cream at 70 percent higher, rice at 43 percent, lentils at 51 percent, coffee pods at 84 percent, and potato chips at 93 percent more expensive in Austria. Of the 69 branded products examined, 81 percent were more expensive in Austria, 10 percent were cheaper, and the rest were priced similarly.
The survey was conducted in early May using the Austrian online stores of Billa and Interspar and the German online shops of Rewe and Globus. Products compared included Calippo Cola ice cream by Eskimo, Ben’s Basmati rice, Bonduelle lentils, Lavazza coffee pods, and Lorenz Crunchips Paprika. Some products were found to cost nearly twice as much in Austria.
Prices were compared including value-added tax (VAT), which ranges from 10 to 20 percent in Austria and 7 to 19 percent in Germany. Promotional offers were included, but loyalty card discounts and bulk purchase discounts were excluded.
“Austria Surcharge” Under Political Scrutiny
Even excluding VAT, identical branded groceries were still around 22 percent more expensive in Austria on average, according to the AK.
The organization said its price comparisons regularly show an “Austria surcharge” and called for action at both the national and European Union levels. Gabriele Zgubic, head of consumer policy at the AK, said the organization welcomed commitments in both Austria’s government program and the EU single market strategy to eliminate the pricing disparity.
SPÖ deputy parliamentary leader Julia Herr also called for stronger action at the EU level, saying Austria should use every opportunity to abolish what she described as an unfair pricing system and make living costs more affordable.
According to Herr, international corporations often sell products at higher prices in Austria because of “territorial supply restrictions.” She said Austrian retailers are effectively forced to purchase goods through Austrian subsidiaries of international companies, where products are offered at higher prices than in other EU countries. Herr argued that this practice contradicts the principles of the European single market.
The European Commission is expected to update member states on the issue at a Competitiveness Council meeting on May 28. Herr said the Commission should deliver concrete results by the end of the year.
