It is now well known that there is no evidence that the euro cash changeover has had a significant upward effect on the average price level in the euro area. While we have observed some significant increases in some sub-components of service price inflation, we have also seen other prices rounded down in the context of the cash changeover.
In our view, and also replying to one of the questions addressed to the ECB in the letter of the Chairperson of this Committee a few weeks ago, it is expected that the greater transparency resulting from the introduction of the euro and the move to exclusive euro pricing will strengthen competition in the retail sector and thereby support the maintenance of price stability in the euro area.