Consumer price trends after the introduction of euro cash

The introduction of the euro in cash form on 1 January 2002 did not lead to an inflation surge on a broad front in Germany. To be sure, prices increased perceptibly at the beginning of the year, but the price hikes are largely attributable to special factors that had nothing to do with the introduction of euro cash. True, according to the data more price movements than normal were registered in January 2002, but price increase were largely offset by price reductions. All in all, inflation has been moderate