Core inflation, Euro zone

Ignacio Escañuela Romana

The key variable is not inflation, because part of it is driven by international prices (mainly oil, in general, energy). It is core inflation, by which we can better measure the domestic inflationary impulses of the economy. 

An additional problem is that measures of core inflation across countries are often not comparable. 

OECD, Consumer price indices (CPIs) - Complete database : Consumer prices - Annual inflation, All items non-food non-energy: 2023, Germany (5.5% July), Italy (4.2% July), France (3.7% June), Spain (4.8% July).  (https://stats.oecd.org/index.aspx?DataSetCode=PRICES_CPI)

In reality, I do not see any relevant differences between the four countries. Over time, core inflation tends to evolve along the same lines. This is not surprising for countries that are part of the same market, with a common currency and subject to the same international ups and downs.

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