They attach greater importance to price developments in goods and services which they buy more frequently and pay for in cash. However, the harmonised indicator of consumer prices does cover a broad basket of goods. Higher perceived inflation occurred first in Germany but in the course of this year also in other member countries.
The Governing Council of the ECB keeps a close watch on the development of perceived inflation not only because this is crucial to acceptance of the new currency but also because it may additionally have macroeconomic implications, such as matching rising wage demands. All in all, the euro cash changeover is an outstanding example of the Eurosystem’s ability to cope with major challenges.