Prices, Competitiveness

Notes:

This indicator corresponds to a real-effective exchange rate index of the euro on the basis of Austria’s external merchandise trade. Calculations of the effective (nominal/real) exchange rate indices of the euro are based on the external trade relations of the euro area as a whole; intra-euro area trade is not taken into account. The indices for Austria for manufactured goods (SITC 5 to 8) and tourism are based on a highly differentiated depiction of Austria’s foreign trade structure broken down by destination and competitor countries. The index base is the first quarter of 1999 = 100. To ensure quick and reliable availability, index calculations are based on consumer prices. The inflation differential corresponds to the relation of Austria’s HICP to the weighted average of consumer price indices of all of Austria’s trading partners. In line with the effective exchange rate indices of the ECB, the calculations underlying the index weighting scheme are based on the arithmetic means of the period from 1995 to 1997. The index of Austria’s price competitiveness covers a total of 52 target and competitor countries; compared with the beginning of 1999, the number of currencies contained in the currency basket first went down from 52 to 43 and has stood at 42 since the beginning of 2001.

Source:

WIFO.

Keywords:

Exchange rate, competitiveness.