45126-Invest. Qual-No111

Investment in Quality2001 to March 2002 was 2.2 per cent. This was similar to thecorresponding rate for the same period between 2000 and 2001 (2per cent) and somewhat less than the rate for the correspondingperiod between 1999 and 2000 (2.8 per cent). The rates for this partof the year in earlier years (i.e., before 1999) were lower at a timewhen annual inflation generally was lower. The report also lookedat an alternative measure, the ratio of prices for the January toMarch period relative to prices for the full year April to March. Thisratio for January to March 2002 relative to the full year to March2002 was 1.3 per cent. This was again similar to the ratio for theperiod 2000/2001 (1.2 per cent) and lower than the correspondingperiod 1999/2000 (1.7 per cent).However, more detailed analysis of sectoral price trends did findindications of unusual price trends over the changeover period.Products and services identified as having unusual price increasesincluded doctors’ and dentists’ fees, cinema prices, packageholidays, pubs and restaurants, taxi fares and local authority rents.The report did not find widespread evidence of euro profiteering butthere was preliminary evidence of profiteering in a number ofservices areas. Unusual price increases in the euro changeoverperiod may reflect a convenience factor of bringing forward fullyear price increases to this particular changeover period. Where thisis the case one would expect that future price increases would belower than otherwise. The extent to which this is the case will onlyemerge over time and further research will be required to reach adefinitive conclusion.An examination of the changeover effect across the euro zone as awhole was undertaken by Eurostat, the Statistical Office of the EU.This study found that the euro changeover did not appear to havehad a significant effect on inflation trends across the euro areagenerally. It pointed out that the rate of change in the euro zoneindex of consumer prices between the first six months of 2002 andthe last six months of 2001 was 1.4 per cent. This was identical tothe rate of change between the first six months of 2001 and the lastsix months of 2000 and little different from the corresponding ratefor the 1999/2000 period. The report concluded that almost all of208