Western European price changes over select periods between 1960-1990

The price rate of change (ROC) in Western European countries* across various time periods in the late twentieth century fluctuate greatly. In the 13 years between 1960 and 1973, the average price of items increased by just 4.6 percent, compared to an increase of 12.4 percent in the seven years between 1973 and 1980. This spike came as a result of the recession of 1973-1975 and the oil shock of 1979, as conflict in the Middle East led to significant rises in oil prices in Western Europe, whose economies had become increasingly dependent on foreign oil imports to sustain industrial production. Further conflicts in the region led to additional recessions in the west in the early 1980s, and price ROC in Western Europe remained relatively high at 8.8 percent in the first half of the decade. A series of domestic and international policy changes helped to stabilize inflation across Western Europe in the second half of the decade, and the price ROC dropped to just 4.1 percent over these five years.