L'Euro Ha Creato Inflazione? Changeover E Arrotondamenti Dei Prezzi Al Consumo in Italia Nel 2002. (Has the Euro Caused Inflation? The Changeover and Consumer Price Rounding in Italy in 2002)

Moneta e Credito, Vol. 56, No. 221, pp. 45-95, 2003

51 Pages Posted: 10 May 2013

See all articles by Franco Mostacci

Franco Mostacci

National Institute of Statistics (Istat)

Roberto Sabbatini

Bank of Italy

Date Written: Marzo 15, 2003

Abstract

The purpose of this paper is to estimate the specific impact of the introduction of the euro on Italian consumer inflation that can be attributed solely to the rounding of prices to figures that are "attractive" in euro. The empirical analysis is based on a large sub-set of prices used by Istat to calculate the general consumer price index for Italy. Between January and October 2002 the general consumer price index rose 2.4%; the impact of rounding on the general consumer price index in Italy amounted to between 0.3 and 0.9 percentage points, depending on the method of estimation used. With reference to the average rise in the general consumer price index of 2.5% in 2002, the impact on average annual consumer price inflation in 2002 lies between 0.1 and 0.5 percentage points. The changeover apparently worked its effect mainly through products sold by traditional retail channels.

Note: Downloadable document is in Italian.

Keywords: Consumer Price Index, Inflation, Prices

JEL Classification: E31, F36

Suggested Citation

Mostacci, Franco and Sabbatini, Roberto, L'Euro Ha Creato Inflazione? Changeover E Arrotondamenti Dei Prezzi Al Consumo in Italia Nel 2002. (Has the Euro Caused Inflation? The Changeover and Consumer Price Rounding in Italy in 2002) (Marzo 15, 2003). Moneta e Credito, Vol. 56, No. 221, pp. 45-95, 2003. Available at SSRN: https://ssrn.com/abstract=2262700

Franco Mostacci (Contact Author)

National Institute of Statistics (Istat) ( email )

Via Cesare Balbo 16
00184 Rome, 0185
Italy

Roberto Sabbatini

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

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