Development of retail prices and the cost of living since the introduction of the euro

Price developments in retailing and in the standard of living received much public attention last year. Considering price developments in retailing in 2002, in particular for food and beverages, as well as consumer durables, there was only a slight rise or in some cases even a drop in retail prices. For 2002 there was no inflationary effect from the euro on retail prices on the whole. However, the total cost of living in comparison with retail prices of the base year 1995 has increased much more strongly and is at a considerably higher level. In this respect, retail prices have had a dampening influence on overall price developments. This is a question, however, of averages for whole product and service groups, which does not take into consideration the stronger price increases of individual goods or the actions of individual "black sheep" among the great number of active market participants.