Price gouging punished by a drop in sales

Bundesbank study on the (T) euro

Hardly any economic and political event moved the population in Germany and the European Union as a whole as much as the introduction of euro cash on January 1, 2002. In practically all countries in the euro area, consumers believed they were seeing a sharp surge in inflation, and it was increasing press reports about excessive price increases. ## | n ##

Official statistics also showed that prices had risen in the vicinity of the introduction of euro cash, but by far not to the extent that the public perceived it. A large part of the price increases was not related to the introduction of the euro, but was caused by other factors such as particularly cold winter weather and higher taxes on energy, tobacco products and insurance. However, there were particularly noticeable price movements for some services. In addition, the price picture changed and the variety of prices increased.

##|n##

In the two years after the changeover to the euro, a far-reaching normalization of price structures can be seen in many areas. The price exaggerations that arose in some cases at the beginning of 2002 have also partially receded in the meantime.

##|n##

You can download the Bundesbank study on this as [PDF file] circular loading.

Source: Frankfurt [ Bundesbank ]