The Influence of Administered Prices and Indirect Taxes on Current Inflation Rates in the Euro Area

The statistical office of the European Union regularly publishes indices on the development of administered prices in the euro currency area. These indices cover products whose prices are influenced by the state. It emerges that the price dynamic for goods subject to state influence weakened considerably. In the second half of 2013 this goods segment accounted for around a fifth of inflation in the euro area, which is significantly lower than the average figure for 2008 to 2012.