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Perceived and measured inflation after the launch of the euro: explaining the gap in Italy

Paolo Giovane and Roberto Sabbatini ()
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Paolo Giovane: Bank of Italy

Chapter 1. in The Euro, Inflation and Consumer’s Perceptions, 2008, pp 13-49 from Springer

Abstract: Abstract Following the euro cash changeover, residents in the area perceived a much larger rise in prices than was recorded in official statistics. The gap between perceived and measured inflation reached an unprecedented size in the course of 2002, then narrowed or closed in most countries. In Italy, it was extremely large and persistent, only beginning to diminish after two years. The perceived surge in prices was popularly associated with the introduction of the euro, even though national statistical institutes and central banks estimated the impact to be generally modest.

Date: 2008
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DOI: 10.1007/978-3-540-78370-1_2

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