VIENNA, May 29 (Xinhua) -- Analysts with the Austrian Institute of Economic Research (WIFO) have raised the country's inflation forecast for this year from 5.8 percent to 6.5 percent over the continued energy crunch.

       Gabriel Felbermayr, director of the WIFO, told Austrian broadcaster ORF on Sunday that Austria's domestic economy "is not prepared for such high inflation rates."

       According to data published by Statistics Austria earlier this month, Austria's year-on-year inflation rate reached 7.2 percent in April, the highest figure recorded since October 1981. The rising inflation was mainly driven by surging fuel and energy product prices and food prices.

       Felbermayr suggested increasing social benefits, such as minimum income and family allowance, to cope with the rising inflation, ORF reported.