Euro to bring inflation fall
Tuesday 09 February 1999
But the EU's statistics office will not publish figures which allow direct comparisons of prices for different goods across member countries.
It is due to release 1996 figures at the end of this month but reports prices in one country as a ratio of the average. This will reveal whether prices are moving closer together but not whether they are converging upwards or downwards.
The Commission will be monitoring the unpublished data. It is running a "rounding down" campaign to encourage retailers not to exploit confusion caused by the launch of the euro to push through price rises.
The new report, published today by ING Barings, the City investment bank, predicts that as long as the single currency leads to a levelling down of prices towards the lowest prevailing, it could reduce the inflation rate by 0.25 per cent a year. This would represent a significant fall from today's already low euroland inflation rate of 0.8 per cent.
According to Mark Cliffe, the author of the report: "The potential significance of price convergence is underlined by the sheer scale of the price differentials." He noted that the European Commission has always seen cheaper prices to consumers as one of the key benefits of monetary union.
- 2 'Don't blame all men for rape' campaign backfires spectacularly
- 3 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 5 Charlie Charlie Challenge explained: not a Mexican demon being summoned — it's gravity
UK's biggest male rape charity Survivors UK has state funding slashed to zero despite 120% rise in men reporting sexual violence and seeking help
Iran launches anti-Isis cartoon competition 'to expose true nature of Islamic State'
Priest warns pupils the 'Charlie Charlie Challenge' is 'demonic activity'
Tinder and Grindr dating apps blamed for surge in cases of HIV, syphilis and other STDs
Fifa corruption arrests: Sepp Blatter 'quite relaxed' and confident he is 'not involved'
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
A nation of inequality: How the UK is failing to feed its most vulnerable people
Australian man punched in the face for defending Muslim women from abuse on train
EU referendum: David Cameron to deny EU migrants and under-18s the chance to vote
iJobs Money & Business
£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...
£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...
£16 - 20k: Guru Careers: A Graduate Editor / Editorial Assistant is needed to ...