# Composition effect

- Canonical URL: https://www.gerhardmerk.de/composition-effect
- Post ID: 590163
- Modified: 2023-07-25T20:58:43+00:00
- Language: en

## Definition

The fact that price changes - as in the case of petroleum products, for example - are more strongly reflected in those baskets of goods in which the price-changing good has a relatively high weight. - This phenomenon is particularly important for explaining the differences in price developments between individual countries within the euro area in the Harmonized Index of Consumer Prices and is given special attention by the ECB. - See oil inflation, inflation, perceived, inflation differentials, metal inflation, quality changes, cost-of-living price index, price dispersion, stimulus threshold, substitution behavior, exchange rate effect, real. 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/

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