Journal of Consumer Policy

, Volume 30, Issue 4, pp 405–419 | Cite as

The Euro Changeover and the Factors Influencing Perceived Inflation

  • Helmut Jungermann
  • Hans Wolfgang Brachinger
  • Julia Belting
  • Katarzyna Grinberg
  • Elisabeth Zacharias
Original Paper


The most flamboyant economic effect of the euro changeover on consumers was a dramatic increase in perceived inflation. To directly measure perceived inflation, Brachinger developed a new index of perceived inflation (IPI). This index is based on some hypotheses about factors influencing perceived inflation. An experimental study is presented which investigated the influence of two of these hypothesized factors, purchase frequency and loss aversion, on individual judgments of price changes. Furthermore, two additional factors have been included that are informative with respect to the IPI, product segment and price level. Judgments of inflation were assessed with three methods, yielding different results. Empirical evidence for the hypotheses was obtained.


Perceived inflation Index of perceived inflation (IPI) Loss aversion Purchase frequency 

JEL classification

C43 E31 D81 



The authors thank Dr. Gisela Kröger of the Statistical State Office Berlin for her valuable support.


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Copyright information

© Springer Science+Business Media, LLC. 2007

Authors and Affiliations

  • Helmut Jungermann
    • 1
  • Hans Wolfgang Brachinger
    • 2
  • Julia Belting
    • 1
  • Katarzyna Grinberg
    • 2
  • Elisabeth Zacharias
    • 1
  1. 1.Institute of Psychology and ErgonomicsTechnical University of BerlinBerlinGermany
  2. 2.Department of Quantitative EconomicsUniversity of FribourgFribourgSwitzerland

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