Surprisingly it did not, or at least not directly. Using micro data on consumer prices and sectoral inflation rates … has altered the behaviour of retail price setting and/or inflation dynamics. We find no evidence that anything has changed … earlier patterns. On the contrary, we do find evidence of a decline in the persistence of the inflation process in the mid …

We show that the announcement of the ECB’s Strategy Review and the revision of its inflation target in summer 2021 went … persistent credibility gains, even after inflation increased …

inflation expectations and consumer spending. We document that for the Euro Area and almost all of its constituent countries … this relationship is generally positive: a higher expected change in inflation is associated with an increase in the … probabilities from our micro-level analysis, we indirectly estimate the impact of a gradual increase in inflation expectations on …

This paper assesses the impact of weather shocks on inflation components in the four largest euro area economies. We … combine high-frequency weather data with monthly data on inflation and output growth within a set of Bayesian Vector Autore … asymmetries and seasonal responses of inflation to temperature shocks, mainly via food, energy, and service prices. An increase in …

This paper documents, for the first time in a systematic manner, the link between labor cost and price inflation in the … and price inflation in the four major economies of the euro area and across the three main sectors. The dynamic …. Our results show that it is more likely that labor costs are passed on to price inflation with demand shocks than with …

This paper analyses the distribution of long-term inflation expectations in the euro area using individual density …

changes does not change much with inflation and does not react much to aggregate shocks; (vi) changes in inflation are mostly … consistent with the predictions of a menu cost model in a low inflation environment where idiosyncratic shocks are a more …

. Conversely, for the inflation rate there is stronger evidence that more refined combinations can lead to improvement over this …

macroeconomic outcomes located in the upper and lower regions of the predictive densities. For inflation and GDP growth, we find … of the predictive densities for inflation are much less informative …