In Germany, rates dropped even more sharply than in other European countries.

These indices contribute to the assessment of , in particular , the potential impact on import prices of movements in the exchange rate and changes in commodity prices ( such as oil ) .

The effective exchange rate of the euro weakened further in the summer months and oil prices continued to rise .

The Eurosystem offers two overnight standing facilities the marginal lending facility and the deposit facility . Stress testing analysis of how an investment strategy would perform if some assumptions regarding adverse changes in relevant risk factors were made ( e.g. higher volatility and correlation between portfolio instruments ) .

The assumptions for commodity prices and exchange rates imply that import prices will increase modestly over the projection horizon .

Measures to consolidate fiscal balances as well as underlying economic scenarios are highlighted . Stability programmes must be updated annually .

In the event that the actual reporting population reports revaluation adjustments , these will cover either revaluations due to price and exchange rate changes , or only price changes in the reference period , subject to the relevant NCB 's prior approval .

Second, the necessary change in prices would be achieved by taxing energy, using tools that are both practical and efficient.

If Brazil s government does not tighten fiscal policy, the exchange rate will generate more inflationary pressure from the rise in prices of imported goods.

It should be stressed that the identification of changeover effects is extremely difficult as any price changes might either be due to the changeover ( rounding or a pass through of changeover costs ) or just reflect a change in other cost factors ( e.g. wages and import prices , etc .) or profits . Bearing this in mind , results of these monitoring exercises confirm that the impact of

Such targets could potentially be applied to credit, interest rates, exchange rates, asset and commodity prices, risk premiums, and or intermediate goods prices.

Instead, Gaffner can be seen explaining that the steep rise in food prices is a result of Russia s currency woes.

In 2000 most of the pronounced increase was caused by an unanticipated rise in import prices , mainly due to exchange rate and oil price developments .

On the one hand, the sudden drop in rates was the result of the slowing economic growth, the company says.

In many euro area countries , this changeover was perceived by consumers to have led to sizeable price increases .

This box summarises the evidence concerning the effects of the euro changeover on prices and reviews the possible reasons why consumers have perceived the euro to be a source of price pressure .

At the same time , the impact of the shocks to the price level from the oil price increases and the depreciation of the exchange rate of the euro in 1999 and 2000 , as well as from the food price increases seen in early 2001 , was gradually fading .

And, third, exporters who wish to preserve their share in world markets where prices are largely denominated in dollars choose to keep their dollar prices stable, to avoid falling victim to idiosyncratic exchange rate movements.

In addition , due to the costs of changing prices ( also called menu costs ) , which often lead to relatively infrequent price adjustments , retailers may have organised their regular price adjustments to coincide with the changeover .

Some prices seem to have been strongly affected by the cash changeover , but the overall impact has been more limited A number of different approaches have been taken when evaluating the effects of the transition of prices from the legacy currencies to the euro analyses of aggregated price developments , studies of a number of basic price series for selected goods and services , and surveys on firms pricing strategies during the changeover .

These arguments suggest that the overall price effects of the changeover are likely to be limited for the euro area as a whole .

It enjoys real credit with the Arab countries, as our colleague Mr Formigoni was remind ing us this morning.

Economic arguments suggest potential for upward as well as downward pressure on prices In relation to the euro cash changeover , there are three main factors that could affect prices a pass through of costs , so called menu costs and rounding to new attractive prices .

In that country the government controls prices.

Kemunduran yang dialami Tiongkok akhir akhir ini, yang memicu turbulensi di pasar modal global dan semakin melemahkan harga harga komoditas, telah memperburuk kemunduran (downturn) di negara negara tersebut.

The use of attractive ( or psychological ) prices ( ending with the digit 9 for instance ) is very common in the retail trade and companies may have reviewed their price structures , after conversion into euro , so that they have as many attractive prices as before the changeover .

Fears have been raised , as witnessed in survey results by the European Commission , that the changeover could result in widespread price increases .

Some of these increases may have been due to some firms and retailers taking advantage of the changeover to raise prices at the expense of the consumer .

Where purchaser prices are index linked , changes resulting from changes in the index shall be shown as price changes in the HICP .

The Eurosystem uses repurchase agreements with a fixed maturity in its reverse transactions . Repurchase transactions are included in M3 in cases where the seller is a Monetary Financial Institution ( MFI ) and the counterparty is a non MFI resident in the euro area .

First , in terms of price and cost developments , alongside the HICP and its components , indications of price developments in the industrial sector , as measured by producer prices , may play an important role in signalling likely future changes in consumer prices as changes in production costs feed through to consumer prices .

Chart 5.4 Nominal effective exchange rate of the euro and oil prices ( monthly averages

By contrast, the Maastricht Treaty tasked the ECB with maintaining price stability, but left it free to provide its own operational definition.

The annual exchange rate for conversion of the gross domestic product at current market prices shall be the arithmetic mean of the daily exchange rates for all working days in a calendar year .

In this respect , the ECB notes that the prices at which banks assets could be acquired by the Fund should be based on market prices .

The shift in relative prices and the related transfer of income from commodity importing countries to commodity exporting countries require a change in the behaviour of companies and households .

Because the dollar prices of most of these countries imports are not very responsive to exchange rate movements, the pass through of those movements into import prices denominated in their home currencies is close to 100 .

In this case , the exchange rate objective could conflict with the price stability concept and the ECB would then fail in its primary objective .

Looking ahead , the related external price pressures are assumed , on the basis of current futures prices for oil and food commodities , to diminish in 2009 , partly as a result of the past appreciation of the exchange rate of the euro .

The upward impact on prices could either be due to a pass through of cash changeover related costs from companies to consumers or a bundling together of price changes .

Making matters worse, central banks routinely deny responsibility for any prices other than consumer prices, ignoring that the value of money is reflected in all prices, including commodities, real estate, stocks, bonds, and, perhaps most important, exchange rates.

Statistics show indeed that at the time of the euro cash changeover the price of several items , most notably those purchased more often , recorded increases above average .

Prices are on the upward trend.

The protracted depreciation of the exchange rate of the euro and the renewed rise in oil prices have increasingly put upward pressure on import prices and consumer prices in the euro area .

Results of business surveys conducted by NCBs and other organisations also generally confirm the view that the cash changeover has not affected prices to any significant extent .