Service inflation

Unless otherwise defined, service inflation refers to the fact that prices for services generally rise faster than prices for goods. The main explanations are as follows: – in an aging society, demand for medical and nursing services is rising faster than supply, – productivity gains for physical capital are higher than for services, which basically have to be provided by individuals, – competition on goods markets is generally more effective than in the services sector, and – global economic integration is far closer in trade in goods than in trade in services, which leads to price pressure for goods when the degree of openness is high. – See deflation, digital, services, non-market. – Cf. ECB Monthly Bulletin of January 2009, pp. 41 et seq. (higher inflation rate explained for services compared with goods; overviews), ECB Monthly Bulletin of March 2014, pp. 64 et seq. (impact of service prices on HICP; overviews).

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/