I don't think the problem of transferring is down to exchange rates and so on, causing the cost to go up. I think its down to simple maths and rounding up.

it used to be say £1.99 for this item and then it goes into the euro.. erm?.. works our at 3 point.. no hang on.. 2.. 3... lets just make it 5 euros its easier than messing about with all the change ....
Think its more the shop keepers rounding things up to make it easier for them to count and get used to....

Just my thought on it...

On 10th July the Cyprus pound was locked to the Euro at CY£1=€1.71 - this takes effect 1st Jan 08.

Dual pricing will help (starts officially Sept 1st 07, and I think it ends at the end of Jan 08 when te CY£ will be withdrawn :(), but there is only one way that prices are going to go in my opinion...and it won't be down.

A "typical" (yes, I know that you can pay more or you can pay less) price for a pint of Keo is CY£1.50 - come Euro day, will it be €2.565? Methinks not
Cyprus is threatening tough measures against profiteering from the introduction of the Euro, but there is already talk of prices sneaking up before Euro day so that people can't be accused of profiteering .

like I said they will make it 3 euros for ease

kilgoreck wrote:

as the Cypriot pound has always been very over-inflated?

What, exactly, do you mean by "over-inflated"?

Mark

kilgoreck wrote:
as the Cypriot pound has always been very over-inflated?

What, exactly, do you mean by "over-inflated"?

Yeah, that phrase caught my eye. What makes you claim that it has "always been very over-inflated", kilgoreck ..??

An interesting Topic.

My personal view is that prices will rise. It has already been said that shops/businesses are likely to round up.

The same thing happened when decimalisation was brought in here in the UK.

But there is a very interesting fact.

I along with others at that time were of the opinion that prices had risen - indeed a very senior politician at a private function said "No party really wanted to be in power when it came in as the increased cost to everyone would be detrimental at the next election"

The other week doing some research I checked the inflation figures for that period. They do not show a jump as everyone would think.

This will be our fourth visit to Cyprus. Each time we have been the prices have seemed to increase. People we have spoken with say that it is so.

Most of our holidays before Cyprus were to Spain. We found it had become expensive with the introduction of the Euro. Perhaps Cyprus will be the same.

There is also another explanation. Wages have risen here in the UK and accordingly so have prices. Our standard of living is better.

Just might be that the increase could also be down to the fact that wages and living standards have also risen in those countries.

fwh