Euro-inflation?

[EKKC]

me and the gf were on a 9 day trip to Italy (Rome Florence Venice) last month. I always wanted to post this but I always forgot after returning.

One thing I knew about the whole time is the bad currency rate from USD to EUR. Last month, $1 gets you less than 75 cents Euro. (rate was EUR 1: USD 1.35 i think)

so naturally to americans everything is expensive there. 80 cents for a coffee? hell thats more than a dollar! 3 euro water? wow thats almost 4 dollars american. 50 euro on the credit card for a meal? hmm nice ~65 bucks on the statement.

But it's got me thinking, since the birth of the currency in 2001 or 2002 or whatevr, have prices gone up at all? at the beginning, it was 1EURO: 0.90 USD! I told my gf that prices probably have not gone up much for the past few years, but it was the falling dollar thats hurting us. in fact i think europeans think their prices are pretty cheap, if not normal.

think about the average joe making 50k euro back in 2002. it was worth what, 45k USD? now the same salary equals 65k USD.

have prices gone up? do europeans think that the cost of living in large cities are high?

 

[Lonyo]

Inflation, taxation, variation of economies.
Costs vary by countries due to things like local economies and inflation, so it's hard to say.
When Finland switched to the Euro though prices went up in a subtle way (they were now in Euro's and inflated).

Cost of living varies across Europe, much like the US. Some cities have high cost of living (not in the Eurozone, but London has a high cost of living, whereas other English cities don't).

Prices here usually include things like tax, which we are used to.

And the dollar is weak. Very weak.

 

[EKKC]

Originally posted by: Lonyo
Inflation, taxation, variation of economies.
Costs vary by countries due to things like local economies and inflation, so it's hard to say.
When Finland switched to the Euro though prices went up in a subtle way (they were now in Euro's and inflated).

Cost of living varies across Europe, much like the US. Some cities have high cost of living (not in the Eurozone, but London has a high cost of living, whereas other English cities don't).

Prices here usually include things like tax, which we are used to.

And the dollar is weak. Very weak.

i wish i get paid in euro!
well, i mean since the inception of the currency, was there any significant inflation or tax increases? i would think most european countries are doing well due to the strong euro.

 

[GTaudiophile]

LOL. The Germans pronounce the Euro the Oy-Ro. Their word for "expensive" is teuer, pronounced toy-er. So, they sometimes call the Euro the Teuro, pronounced toy-ro.

The Euro started as an electronic banking currency on January 1, 1999. It didn't take physical form until its introduction on January 1, 2002. Now, referring to inflation, this is the example I like to use: On December 25, 2001, one liter of beer (Ein Maß) cost say 6,00 DM ($3.00). On January 1, 2002, that same beer cost 6,00 Euro (then $6.00). So, as far as food is concerned, many Germans would say that food doubled in price overnight, especially in restaurants. Personally, I still find it is MUCH cheaper to dine in Germany than in the US. I can get an appetizer, main course, dessert, and at least three rounds of beer at a VERY nice restaurant for around 20,00 Euro.

 

[FrustratedUser]

Originally posted by: EKKC
me and the gf were on a 9 day trip to Italy (Rome Florence Venice) last month. I always wanted to post this but I always forgot after returning.

One thing I knew about the whole time is the bad currency rate from USD to EUR. Last month, $1 gets you less than 75 cents Euro. (rate was EUR 1: USD 1.35 i think)

so naturally to americans everything is expensive there. 80 cents for a coffee? hell thats more than a dollar! 3 euro water? wow thats almost 4 dollars american. 50 euro on the credit card for a meal? hmm nice ~65 bucks on the statement.

But it's got me thinking, since the birth of the currency in 2001 or 2002 or whatevr, have prices gone up at all? at the beginning, it was 1EURO: 0.90 USD! I told my gf that prices probably have not gone up much for the past few years, but it was the falling dollar thats hurting us. in fact i think europeans think their prices are pretty cheap, if not normal.

think about the average joe making 50k euro back in 2002. it was worth what, 45k USD? now the same salary equals 65k USD.

have prices gone up? do europeans think that the cost of living in large cities are high?

The US dollar got a lot weaker in the last few years.

When the Euro was first introduced all retailers converted their prices to Euro and then 'by mistake' rounded the prices UP. Everyone was pissed off because everyting got more expensive due to this.

 

[EKKC]

speaking of rounding, i also found it very nice that many round off to the nearest 0.05

0.01, 0.02, = no change
0.03, 0.04 = 0.05

get rid of them pennies already america

 

[GTaudiophile]

The Germans also include sales (VAT) tax in the price. I find that to be convenient but too bad they don't have the constant reminder of just how much they are being screwed!

 

[EKKC]

Originally posted by: GTaudiophile
The Germans also include sales (VAT) tax in the price. I find that to be convenient but too bad they don't have the constant reminder of just how much they are being screwed!

lol. italy too. taxes always included.

 

[tweakmm]

Originally posted by: GTaudiophile
LOL. The Germans pronounce the Euro the Oy-Ro. Their word for "expensive" is teuer, pronounced toy-er. So, they sometimes call the Euro the Teuro, pronounced toy-ro.

I always found that funny. :laugh: