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13.
Retail prices in Slovenia and Italy
Žižmond, Egon
The aggregate level of retail prices in Slovenia after its independence was lower than in Italy. For the average of the sample in 1990, the aggregate price parity was 0.7717 din/100 ITL and the ...aggregate level of prices was 18 % lower (calculated on the basis of the official exchange rate 0.9441 din/100 ITL than in Italy. From 1990 to 1992, relative retail prices in Slovenia increased by 487 %. This means that the aggregate price parity of the sample in 1992 increased to 4.5318 SIT/100 ITL. According to this calculation, the level of Slovenian prices in 1992 was 31 % lower (the exchange rate of the Bank of Slovenia 6.5964 SIT/100 ITL) than in Italy. Quite different were movements of the exchange rate and relative prices after 1992. While tha exchange rate of the Italian lira from 1992 to 1994 increased by 21 %, relative retail prices in Slovenia increased by 46 %. This means that the aggregate price level in Slovenia in 1994 increased: the level of Slovenia prices in 1994 was only 17 % lower than in Italy. Also the purchasing power of the Slovenenian average net wage in Slovenia was much lower than the purchasing power of the Italian net wage in Italy. After 1990 it was diminishing and in 1992 reached the lowest level. Because of the faster growthof Slovenian relative wages in comaprison with the relative growth of retail prices, it increased in 1994 to 38,1 % of the Italian one.
Type of material - research report
Publication and manufacture - Maribor : School of Business and Economics, Institute for Economic Diagnosis and Prognosis, 1995
338.5 ŽIŽMOND E. Retail,Italy
338.5 ŽIŽMOND E. Retail,Italy
available - outside loan, loan period: 30 days
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