In Europe, by law, the speedometer can never show slower than actual speed. EEC directive 75/443 (1975) and the follow-up EC directive 97/34, which you can find here:
http://europa.eu.int/comm/enterprise...5_443_cee.html
from paragraph 4.4: "The speed indicated must never be less than the true speed."
Although it is not in the English version, I am told that the German version of the document has further formulas in it. The translation I was given is:
"At the speeds specified for the test in 4.3.5 above and between these speeds, there shall be the following relationship between the speed indicated on the dial of the speedometer (V1) :
O * V1 - V2 * V2/10 + 4 km/h"
So therefore, the speedometer in an EC compliant vehicle will show at least 10% over the true vehicle speed.
http://autos.groups.yahoo.com/group/Priu...
Also, as others have mentioned, if you change tyres on your vehicle, or worn vs. new tyres, will have a different diameter or revolutions per mile figure, and that can also cause your speedometer to be off a few %.
Your GPS will usually be more accurate.
autos.groups.yahoo.com