The Austrian government is allocating a package of more than €28 billion to compensate the population's increased costs due to rising prices amid high inflation, Austrian Chancellor Karl Nehammer said on Tuesday.

The chancellor added that the aid package should alleviate the burden that people have faced due to rising prices in all sectors of the economy as a result of higher inflation.

According to him, pensioners will receive €500 to €1,000, taxpayers will receive the same amount to compensate for increased costs, families with children will receive up to €900 per child and the poor will receive €800.

In Austria, the inflation rate has hit a record high since February 2022. In March and April, it was already at its highest level since 1981, at 6.8% and 7.2%. The rise in inflation is driven by increases in fuel, energy and food prices. In May, it is expected to be the highest since 1975 at 8.0%.