Euro drives up prices, shoppers complain

FRANKFURT, Germany -- Today marks the first anniversary of the use of the euro in cash transactions, and Europeans increasingly are complaining about higher prices for everyday items -- from cups of coffee to haircuts -- boosted during the switchover from national currencies.

One of them is Europe's top central banker, who says he's upset at being gouged for parking fees. He also concedes that bank officials were less than honest about admitting the link between the euro's launch and some price rises.

"I will confess we were very reluctant to admit that, indeed, the switchover did somewhat act to increase prices," European Central Bank President Wim Duisenberg said.

He thinks that would have helped him sell his argument, generally backed by economists, that overall inflation because of the euro was "very limited."

Consumers complain that merchants rounded up prices in the conversion.

A December poll of 12,000 people for the European Commission showed that 84.4 percent of those surveyed in the 12 countries using the euro felt prices had been rounded up to the disadvantage of consumers. The number was up from 67.3 percent in January.

A survey in December by the German government statistical agency and the country's central bank provided new evidence of above-average price increases for common goods and services.

Leading the list were movie tickets, up 4.6 percent; hotel rooms, up 4.6 percent; and car washes, up 4.3 percent.

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