Austria’s WIFO raising 2022 inflation forecast due to energy costs

GENEVA (Reuters) – Austria’s WIFO economic institute plans to raise its inflation forecast for this year to 6.5% from 5.8% seen in March due to higher energy prices, the institute’s chief said on Sunday.

“The 5.8% … that is WIFO’s March estimate. We will now have to revise it upwards to 6.5%,” WIFO director Gabriel Felbermayr told broadcaster ORF.

He said the revised forecast included provision for a European Union embargo of Russian oil, which EU countries are negotiating.

(Writing by Paul Carrel; Editing by Emelia Sithole-Matarise)