Austria Tackles Inflation Gap With Fillips on Food and Power

Austria’s embattled coalition agreed on a set of tax cuts and subsidies designed to lower costs for businesses and households, as the government tries to temper inflation and blunt a surge in polls for right-wing nationalists.

Value-added taxes on staple foods will be halved and consumer electricity prices will fall about a third as the program is implemented over the next six months, the government announced Wednesday. Industrial users of power will have prices capped at €50 ($58.23) a megawatt hour, equivalent to similar subsidies announced by neighboring Germany in November.

“We want to not only slow down inflation in ...