Trends in administrated prices in the euro area

Since May 2007 the European Central Bank (ECB) has published an experimental index for the development of administrated prices in the euro-currency area. In doing so, the ECB has provided economic forecasters with a new and interesting instrument. The index includes the price movements of goods and services whose prices are either directly or largely influenced by the state or by state regulatory agencies. Prices of goods that are only influenced by consumption taxes are not included in this category. This article discusses the methods of this index and some results.