English Translation

7 - 2 - based on prices actually paid, collected by the Central Statistical Office. Thus, the index here is closer to reality. This development is all the more remarkable because in all other parts of Europe there have been sharp increases in prices and cost of living, with some exceptions from Norway and Holland. A more detailed picture of the price development is given in the accompanying diagram. It contains a red line and a red lines, which express the level of the cost of living. The Prague scheme contains - in contrast to the rest of the Reich - various indexes, including taxes and social charges. These loads must be eliminated in order to reach the pure cost index and to enable the Reichsvergleich to be compared. Therefore, in the diagram the line for "different" is marked again, whereby taxes and social charges are eliminated. The sharp increase in the tax burden in January 19942 is also not due to a tax increase, but rather to the fact that higher wage taxes appear in January due to higher earnings of the labour force in the year 1994l. The red line shows the pure price index with the omission of the tax increase. It gives a picture of the price development. The diagram clearly shows that the reduction in the cost of living is mainly due to the reduction of the "food costs". Here, the price reductions carried out in the context of the war-committed price formation have a significant impact. The reductions in the food sector were carried out without any influence on the farmer's income and concern only industry and trade. Even in the case of clothing and footwear, substantial price reductions have been made in the course of the year.