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Sweden, Spain and Greece have seen the highest growth in prices for alcoholic beverages and tobacco in the past year. The increase in prices in Sweden is due to higher taxes on tobacco.
The harmonized consumer price index for the European Economic Area (EEA) was 102.2 (1996=100) in October 1997. This is an increase of 0.1 per cent from the previous month. Higher prices for alcoholic beverages and tobacco account for much of the growth.
From October 1996 to October 1997 (the 12-month rate), the harmonized consumer price index for the EEA rose 1.7 per cent. The highest price inflation measured by the 12-month rate occurred in Greece, Sweden and the Netherlands, while Ireland, France and Austria had the lowest price inflation.
More expensive health care and education
The cost of health care and education is also contributing to the growth in prices in the EEA. In health care, the 12-month rate varied widely between the countries. Italy and Portugal had the highest increase with 9.4 and 4.6 per cent, respectively, while in Greece the rate dropped 11.2 per cent. Countries with declining prices showed little growth in the harmonized consumer price index for the EEA, and the overall increase over the past 12 months is 3.3 per cent.
Weekly Bulletin issue no. 50, 1997