# Service inflation

- Canonical URL: https://www.gerhardmerk.de/service-inflation
- Post ID: 591714
- Modified: 2023-07-25T21:14:10+00:00
- Language: en

## Definition

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/

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