This example shows that, in recent years, prices for photo and video equipment, such as digital cameras, have fallen quite a lot in the euro area – since 2003, they have fallen by 10.5% a year, while average prices for consumer products have slightly increased. Meanwhile, jewellery and watch prices, after a period of stability, have risen more sharply than average in recent years, and by as much as 13% in late 2006, though the rate of increase shows some volatility. Other prices have kept close to the average, for example prices for sausages and other meat products. The average inflation rates that governments and economists use are made up of many rising and falling rates for individual products and services.
Source:European Commission