Europeans: has the introduction of the Euro caused a rise in prices?
 

We wonder if merchants and others have used the introduction (and confusion) of the new, common currency as an excuse for "rounding-up" prices? Please comment.

No question about it according to our German and Dutch friends living there. My wife returned last night and confirmed the same thought--everything seems to have gone up about 10%. No real surprise though if you think about it from the view of the local businessman--when in doubt or transition, try the higher price and check the competition. I can't really blame them as the costs and hassles of the transition must be enormous.

I have family in Germany and they confirm the overall price increases. Hotel and restaurant meals or anything else connected with tourist business has increased in price. Utility prices had to, by law, stay the same, meaning they had to be converted exactly.

I live in Germany and yes, the prices have risen.

I live in Finland and some prices have been rounded up, but not really noticably. The cost of food has gone down.

I live in France, and yes, the prices have gone up. Some very obviously, and others 'sneakily' - one example, detergent packed in smaller amounts in the same size box at the same price. According to consumer affairs - the price increase in detergents is 24% since November. Food has also gone up - especially meats and produce... part of the reason the produce has gone up is the freeze we had here in the south in the early winter.<BR><BR>PB

Yes. When I was in the Dordogne in April everything had increased since November. The price of fish, for whatever reasons related to the euro or otherwise, was astronomical. Yes, merchants are both rounding up and giving you smaller quantities for the same price.

<BR>For many items, any change in currency will cause price modifications. Vending machines don't charge 67 cents for a Coke, they charge 60 cents or 70 cents. When a new currency is introduced, prices that represented round numbers in the old currency will translate to awkard prices like 67 cents.<BR><BR>If a tourist attraction formerly charged 5 DM for entrance, they may now charge 2.50 Euros. This may represent either a small rise or a small drop.<BR><BR>Another effect of the Euro will presumably be to homogenize prices throught the EU countries that have adopted the currency. When a pint of ice cream is twice as much in France as Italy, it is very obvious when both are sold in the same currency (as opposed to one being priced in Francs and the other in Lire). In some countries this will cause prices to rise, in other countries the net effect may be falling prices.

ttt

In the Netherlands: yes, but not dramatically. Most things have been rounded up, about 3%.

I live in Munich and prices have gone up here. Some things just a little and some things a lot! NO ONE has rounded prices down (surprise surprise). It seems that a lot of places have taken advantage of the confusion and increased their prices a bit.

I've read reports from Germany how the government is expressing concern at price rises due to the introduction of the euro, which the locals have nicknamed teuro, from the German word teur (expensive). Politicians regret not having imposed price freeze as in some other euro countries.

I am currently living in Germany and yes, prices have gone up for the most part for several reasons:<BR><BR>1. As Steve Mueller posted, coin machines need to take the new Euro coins and prices were mostly rounded up to the nearest usuable coin, not down. IE; someting that cost 6DM before costs 3 Euro now. (with 1 Euro equal to 1.955 DM you can see the small increase).<BR><BR>2. Many here in Germany calculate from DM to Euro by dividing the DM price in half. This is good for a quick and dirty approximation but the real divider is 1.955 and some people get bent out of shape when the new Euro price is not half the old DM price. That said, some new EURO prices are most assuredly higher than the old DM prices.<BR><BR>3. Yes, there has been some outright price "fraud" and pushing prices up to the limit of acceptability. Some merchants have simply pushed prices up and are seeing where the price resistance is and then adjusting it down. Other have simply priced items in the same amount in Euro as it was in DM, and in effect doubling of the price in Germany. German TV had a program on this last point 2 weeks ago and it was a hoot watching the garage owner try to explain to the reported why the tire that cost DM 179 in November now cost Euro 179 in April !!!.<BR><BR>For most tourists this price slippage is not really an issue, since your time in Europe is limited (and if you find a price too out of line, do as the europeans do and just don't buy), but for those here longer, the price changes can really add up !!<BR><BR>BUT FOR TOURISTS, NOTE THIS: when leaving the waiter the small change left from paying the bill, especially in France, remember that the coins are worth much more than before, almost 6 1/2 times more in France!! We made many waiters in France very happy until we realized that our habit of leaving all the copper/bronze colored coins included the 20 and 50 cent pieces, too (about 20-50 cents US) and that paying for 2 coffees worth Euro 2.25 total with a 5 Euro note was giving them a tip of 75 cents on top of the 15% service... for small vaule checks better to leave the 20 cent and under coins only...<BR><BR>Ah, money, doesn't it spend itself fast !!??<BR><BR>Judy from Munster in Westfalen<BR><BR>

Prices also were rounded up in Belgium. Some concern expressed about it, but no action taken. Except for the outrage against some taxi drivers, who, at the begining of the year, were charging passengers paying in Belgian francs the equivalent of 50 francs per euro when the real rate was closer to 40 francs. The practice was worst at train stations and the Brussels airport, where passengers were more likely to be tourists who didn't have the correct rate at the top of their head.