Comparison of Prices Between Austria and Germany According to Eurostat

The Statistical Office of the European Communities (Eurostat) in collaboration with the statistical offices of the member states and of some other countries has carried out price surveys for several years. In addition to providing information on price differentials, these surveys form the basis of purchasing power parity comparisons of GDP in the OECD area. The comparison of prices between Germany and Austria reveals substantial price differentials in many headings. The overall picture that emerges from the Eurostat survey corresponds only partly to the conventional view that, given Austria's considerably lower labor costs, labor-intensive goods and services are cheaper, but manufactured goods more expensive in Austria than in Germany. However, consideration of other price statistics makes it doubtful in some expenditure groups that the prices compared refer to basically similar products.