Euro Area Inflation: Gaining Momentum Below the Hood
Today Eurostat released April 2011 inflation for the Euro area. Prices are increasing at a 2.8% annual pace, up from 2.7% in March and very much above the ECB’s comfort zone of around but slightly below 2%.
Today’s report is the second release and includes the cross section of price gains below the headline number. The first ‘flash’ estimate does not specify the breakdown.
Inflation’s hitting all sectors, goods (primarily) and services alike, via inputs to production.
April core prices rose 1.6% over the year. The goods-price inflation is flowing into the the service-sector as well – headline service-sector inflation is 2.0% in April, up from its low of 1.2% one year ago. There may be some seasonal distortions here associated with the Easter holiday, but the upward momentum has been established.
Price gains at the country level are broad based.
2% annual inflation is increasingly ubiquitous for key countries, Periphery and Core core alike. Below is the diffusion of 2% annual price gains, where an index value above 50 indicates that the majority of component prices are rising at a 2% rate. The legend indicates the longer-term average diffusion of price gains.
Germany is still seeing the majority of annual price gains below 2% – the current index is 43 – but the breadth of 2% inflation is increasing beyond its longer-term average of 34.8. In Spain and Italy, current inflation diffusion indices are likewise increasing, where Spanish price gains are broad, 55.6 in April.
And it’s not just VAT taxes.
The chart below illustrates the tax-adjusted inflation rate across the Eurozone (ex Ireland, unfortunately, whose data is unavailable, Austria, Estonia and Cyprus). This series is lagged one month.
The tax-adjusted inflation rate assumes that all tax hikes are passed fully through to final goods prices. It gives a proxy for the inflation effect of fiscal austerity (hike in VAT, for example).
Although the uptick in inflation is warranted at this stage in the recovery, especially in the core, the momentum in prices can no longer be attributed to taxes only – it’s broader than that. Greece, for example, saw its inflation rate peak around 5.6% in September 2010 when its tax-adjusted inflation rate (inflation excluding VAT) was just 1.1%. Now, however, the headline and tax-adjusted inflation rates are converging, 4.5% vs 1.7% in March. Much of the tax-adjusted inflation can be attributed to food and energy; nevertheless, the base effects of the VAT hikes are wearing off.
Tricky times for Euro area policy makers when the Core AND the Periphery are showing such broad price gains. Meanwhile, the Periphery are contributing little by way of growth.
This post originally appeared at Angry Bear and is reproduced here with permission.
74 Responses to “Euro Area Inflation: Gaining Momentum Below the Hood”
Brynn Blay • May 31st, 2011 at 3:41 am
Amazing blog. I was checking continuously this blog and I am quite impressed! Extremely helpful information specially the first part. I care for such information much. I was seeking this particular information for a very long time. Thank you and good luck.
blu356ble765 • May 31st, 2011 at 5:00 am
There are actually a whole lot of details like that to take into consideration. That may be a nice level to bring up. I provide the thoughts above as general inspiration but clearly there are questions like the one you deliver up the place a very powerful thing will likely be working in honest good faith. I don?t know if greatest practices have emerged round things like that, however I am positive that your job is clearly recognized as a good game. Both girls and boys feel the affect of only a second’s pleasure, for the rest of their lives.
ultimate loser drinking game • May 31st, 2011 at 7:23 am
A lot of thanks for your whole hard work on this blog. My mum delights in getting into investigations and it’s really easy to see why. A number of us learn all relating to the compelling ways you make powerful guides through this web blog and recommend response from some other people on this idea plus our favorite daughter is always understanding a great deal. Have fun with the remaining portion of the new year. You’re the one doing a fantastic job.
Real Estate Information Lake Mary FL • May 31st, 2011 at 6:33 pm
Great job, always enjoy reading your commentary.
Isa Coult • June 1st, 2011 at 9:47 am
An fascinating discussion is worth comment. I think that you ought to write far more on this topic, it may not be a taboo subject but normally men and women aren’t enough to speak on such topics. To the next. Cheers
gpswatch • June 2nd, 2011 at 5:30 am
appealing topic.
hosting • June 2nd, 2011 at 7:14 am
I’ve been studying your entries all over my morning holiday, and I will have to admit the entire article has been very enlightening and very well written. I assumed I would help you realize that for a few reason why this blog does no longer view smartly in Web Explorer 8. I want Microsoft might stop converting their software. I have a query for you. May you thoughts exchanging weblog roll hyperlinks? That will be in point of fact neat!
Schedules | Full Moon Party Thailand • June 2nd, 2011 at 9:14 pm
Full Moon Party Thailand…
[...]we like to honor other sites on the web, even if they aren’t related to us, by linking to them. Below are some sites worth checking out[...]…
Bangkok Poll: Govt given 5.12 grade – Bangkok Post | Cheap Thailand Holidays • June 3rd, 2011 at 6:09 am
Cheap Thailand Holidays…
[...]while the sites we link to below are completely unrelated to ours, we think they are worth a read, so have a look[...]…
Recycled Teak Furniture • June 3rd, 2011 at 1:01 pm
Aw, this was a really nice post. In thought I want to put in writing like this additionally – taking time and precise effort to make a very good article… however what can I say… I procrastinate alot and by no means seem to get something done.
Party Tips | Full Moon Party Thailand • June 5th, 2011 at 6:41 am
Full Moon Party Thailand…
[...]here are some links to sites that we link to because we think they are worth visiting[...]…
Bret • June 5th, 2011 at 10:57 am
Thanks for another fantastic article. Where else could anybody get that kind of information in such a perfect way of writing? I’ve a presentation next week, and I am on the look for such info.
Darnell Snelgrove • June 7th, 2011 at 5:39 am
I am curious to find out what blog system you’re utilizing? I’m having some small security problems with my latest website and I would like to find something more safe. Do you have any suggestions?
passive profit portals • June 7th, 2011 at 6:43 am
Thanks very much for this great post,this is exactly the type of blog that will keep me returning to read your updates
קידום אתר אינטרנ • June 7th, 2011 at 8:10 am
היי, רציתי לעוץ לכל הבלוגרים ל אתר עם פרטים בדבר קידום אתרים בגוגל ובשאר פורטלי החיפוש.
international roaming rates • June 7th, 2011 at 9:52 am
I’ve been recently wondering about the very same factor personally lately. Glad to see someone on the same wavelength! Nice article.
acrylic nail supplies • June 7th, 2011 at 12:27 pm
Just right points?I might be aware that as any individual who in reality doesn’t write on blogs a lot (actually, this may be my first post), I don’t suppose the time period ‘lurker’ is very turning into to a non-posting reader. It’s no longer your fault in the slightest degree , but most likely the blogosphere could come up with a greater, non-creepy identify for the 90% of us that enjoy reading the content material .
Hair Extensions Online • June 8th, 2011 at 2:54 pm
I just now needed to make a quick comment in an effort to express gratitude for your requirements for those wonderful pointers you might be posting here. My time consuming internet investigation has at the end during the day been rewarded with top quality strategies to present to my guests. I’d claim that a number of us prospects are actually endowed to happens to an incredible network with developed solid relationships . marvellous those that have useful hints. I am quite privileged to possess used your webpages and search forward to really more fabulous minutes reading here. Thank you for a lot of things.
סוכנות רכב • June 8th, 2011 at 3:22 pm
היי אני רוצה להמליץ לכם על חברה בתחום מכירת רכבים המתמחה בשרותי טרייד אין לסוכנויות רכב ולקוחות פרטיים . באתר, אינפורמציה רבה המלווה בתמונות מכירת הרכבים ורשימה המתעדכנת באופן שוטף עם הרכבים הנמצאים במקום ומיועדים למכירה.
Indonesia Furniture • June 8th, 2011 at 8:04 pm
Youre so cool! I dont suppose Ive read something like this before. So nice to search out somebody with some authentic thoughts on this subject. realy thanks for starting this up. this web site is something that’s needed on the net, somebody with a bit of originality. helpful job for bringing something new to the internet!
Insurance • June 9th, 2011 at 12:22 am
Heya this is a wonderful post. I’m going to e mail this to my associates. I stumbled on this while browsing on google I’ll be sure to come back. thanks for sharing.
Wilber Desorbo • June 9th, 2011 at 5:16 am
I’m really enjoying the design and layout of your website. It’s a very easy on the eyes which makes it much more pleasant for me to come here and visit more often. Did you hire out a developer to create your theme? Excellent work!
Outlook Encryption • June 9th, 2011 at 8:36 pm
Fantastic, beautiful blog with great informational content. This is a really interesting and informative post.
ask a girl out • June 9th, 2011 at 9:02 pm
Thanks for taking the time to discuss this, I really feel strongly about it and love learning more on this topic. If attainable, as you gain experience, would you mind updating your weblog with extra information? It is extremely helpful for me.
click here • June 9th, 2011 at 10:27 pm
Thanks for taking the time to debate this, I really feel strongly about it and love learning extra on this topic. If doable, as you achieve experience, would you mind updating your blog with extra data? This can be very useful for me.
http://ontariosite.com • June 10th, 2011 at 4:42 am
You lost me, friend. I mean, I assume I get what youre declaring. I recognize what you are saying, but you just appear to have overlooked that you can find some other individuals in the world who look at this matter for what it genuinely is and may not agree with you. You may perhaps be turning away a decent amount of people who may have been supporters of your web site.
Philips LED light bulbs • June 10th, 2011 at 8:16 am
Greetings! This is my first visit to your blog! We are a collection of volunteers and starting a new initiative in a community in the same niche. Your blog provided us useful information to work on. You have done a extraordinary job!
muscle relaxant • June 10th, 2011 at 5:27 pm
I absolutely love your blog and find a lot of your post’s to be exactly what I’m looking for. can you offer guest writers to write content for you? I wouldn’t mind writing a post or elaborating on some of the subjects you write concerning here. Again, awesome blog!
Karina Meuler • June 10th, 2011 at 6:29 pm
Have you ever thought about writing an ebook or guest authoring on other blogs? I have a blog based upon on the same topics you discuss and would love to have you share some stories/information. I know my viewers would value your work. If you’re even remotely interested, feel free to shoot me an email.
Angry Birds • June 11th, 2011 at 2:54 am
Hi, I just found your web site via google. Your viewpoint is truly applicable to my life currently, and I’m really happy I discovered your website.
Lila Naftzger • June 11th, 2011 at 9:54 am
Great site thanks
Stroller • June 11th, 2011 at 10:39 am
What you’re saying is completely true. I know that everybody must say the same thing, but I just think that you put it in a way that everyone can understand. I also love the images you put in here. They fit so well with what youre trying to say.
Being in a star city nyc limo • June 11th, 2011 at 3:19 pm
Your current positions usually have alot of really up to date info. Where do you come up with this? Just saying you are very resourceful. Thanks again
eXp Revenue Share Calculator • June 12th, 2011 at 12:34 am
Great job, thanks
rasteirinhas femininas • June 12th, 2011 at 7:18 am
The ideas you provided here i will discuss extremely precious. It been found a real pleasurable surprise to possess that looking forward to me when I awoke today. They can be constantly concise and simple to know. Thanks a ton with the valuable ideas you’ve got shared in this article.
Brooks Henricks • June 13th, 2011 at 5:47 am
Very efficiently written information and facts. It will likely be valuable to anyone who usess it, including myself. Sustain the fantastic work ?C for sure i will attempt extra posts.
green iphone • June 13th, 2011 at 7:01 am
Admiring the commitment you put into your blog and detailed information you provide. It’s great to come across a blog every once in a while that isn’t the same out of date rehashed material. Fantastic read! I’ve bookmarked your site and I’m adding your RSS feeds to my Google account.
Outlook Boost Coupon Code • June 13th, 2011 at 7:21 am
I’m not sure exactly how I found this blog because I had been researching information on Real Estate in Longwood, FL, but anyway, I have enjoyed reading it, keep it up!
Oviedo Homes For Sale • June 13th, 2011 at 8:40 am
Good work, Your post is an excellent example of why I keep coming back to read your excellent quality content….
create software • June 13th, 2011 at 10:09 am
Hey. I don’t abide by several blogs, but yours is of thelittle I abide by.Use a excellent day!
Carole Pieroni • June 13th, 2011 at 10:14 am
What you stated made a great deal of sensation. But, think about this, what should you additional a little subject material? I indicate, I dont desire to tell you how you can run your web site, but what if you added one thing to maybe get peoples interest? Similar to a video or possibly a photo or two to have folks fired up about what youve acquired to say. In my view, it will make your web site arrive to life somewhat bit.
Indonesia Teak Furniture • June 13th, 2011 at 12:48 pm
This website can be a stroll-through for all of the info you needed about this and didn’t know who to ask. Glimpse right here, and also you’ll undoubtedly uncover it.
iPhone No Camera • June 13th, 2011 at 1:19 pm
Hey! This is my 1st comment here so I just wanted to give a quick shout out and tell you I genuinely enjoy reading your posts. Can you suggest any other blogs/websites/forums that go over the same topics? Thanks a ton!
women cl shoes • June 13th, 2011 at 4:37 pm
There’s noticeably a bundle to find out about this. I assume you made sure good points in features also.
Teak Furniture Indonesia • June 13th, 2011 at 4:48 pm
Oh my goodness! an incredible article dude. Thank you However I am experiencing difficulty with ur rss . Don’t know why Unable to subscribe to it. Is there anyone getting equivalent rss drawback? Anybody who is aware of kindly respond. Thnkx
Baltic Amber Jewelry Store • June 13th, 2011 at 6:49 pm
This design is spectacular! You definitely know how to keep a reader amused. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Excellent job. I really enjoyed what you had to say, and more than that, how you presented it. Too cool!
About Teak Furniture • June 13th, 2011 at 10:36 pm
I was questioning if you would like to be a visitor poster on my web site? and in exchange you could possibly embrace a hyperlink your post? Please reply while you get a chance and I’ll ship you my contact particulars – thanks. Anyway, in my language, there aren’t much good source like this.
Homes For Sale in Denton TX • June 14th, 2011 at 5:28 am
Hi there, I found your blog via Bing while searching for a related topic, your web site came up, it looks great. I’ve bookmarked it in my bookmarks.
Lilliana Drossos • June 14th, 2011 at 9:28 am
After a moment, regular commenters begin to form a community. It starts to feel intrusive to insert yourself.
Explore your options with other online auctions • June 14th, 2011 at 10:23 am
Where by perhaps you have found the resource intended for that write-up? Brilliant studying I’ve subscribed to your site feed.
lifecoaching certified review • June 14th, 2011 at 11:03 am
It is in point of fact a nice and useful piece of information. I am happy that you just shared this useful info with us. Please keep us up to date like this. Thank you for sharing.
xiaorr456 • September 17th, 2011 at 8:39 pm
dude. your blog is wonderful just like my blog,
renren876 • September 18th, 2011 at 2:20 am
Bless you for this particular info I had been exploring all Bing to uncover it!
renren876 • September 20th, 2011 at 5:49 am
This is a massive and an very interesting write to check out on this massive website. Never post any replies only now just could not resist
Dudley • September 20th, 2011 at 7:19 am
Thank you for this interesting write-up, i’ll bookmark this page
Johns • September 20th, 2011 at 7:20 am
i cant beleive i stumbled onto your post..thanks so a lot!!! i am going to have to sign up
Donaldson • September 21st, 2011 at 1:01 am
Wonderful information. I will spread the word to my friends to tell them to visit your site.
Susanna • September 21st, 2011 at 9:51 am
I can’t understand how to add your weblog to my news reader. any recomendations would be appreciated I want to access your posts.
Cheap Ralph Lauren Polo Shirts • September 22nd, 2011 at 1:40 am
Super-Duper weblog! I am loving it!! Will come back again taking you RSS feeds also, Thank you.
free games • September 24th, 2011 at 7:07 pm
You are my aspiration, I have few blogs and often run out from brand 
. “Fiat justitia et pereat mundus.Let justice be done, though the world perish.” by Ferdinand I.
mens Health Center • September 27th, 2011 at 4:51 am
As you get old, the gents medical problems will certainly transform. May possibly some sort of light beer instinct produce ailments? Can be guy the symptoms of menopause some sort of misconception or maybe a true mens health problem? Can male growth hormone remedy help you come to feel younger once again? Find strategies to most of these as well as other mens wellbeing inquiries.
Boyce Dorrill • September 27th, 2011 at 7:19 pm
Hey, you used to write magnificent, but the last few posts have been kinda boring… I miss your tremendous writings. Past few posts are just a bit out of track! come on!
Emanuel Cottillion • September 27th, 2011 at 10:12 pm
I got what you mean ,bookmarked , very nice web site .
Sociology Careers • September 28th, 2011 at 2:39 am
I appreciate the insightful post. Thanks.
send flowers uk same day • September 28th, 2011 at 3:00 pm
Blessed are the losers as they determined the winners.
balustrady szklane • September 28th, 2011 at 5:05 pm
I think other web site proprietors should take this web site as an model, very clean and great user friendly style and design, let alone the content. You’re an expert in this topic!
reception furniture • September 28th, 2011 at 7:32 pm
I do agree with all the ideas you have presented in your post. They are very convincing and will certainly work. Still, the posts are too short for beginners. Could you please extend them a little from next time? Thanks for the post.
Spławiki • September 29th, 2011 at 12:23 am
Very nice post. I just stumbled upon your blog and wanted to say that I have truly enjoyed browsing your blog posts. In any case I’ll be subscribing to your feed and I hope you write again very soon!
coupons • September 29th, 2011 at 6:37 am
Locate along with talk about online coupons along with promotional unique codes for nice special discounts from thousands of internet vendors.
Cheap brand name shoes,Jordan shoes, Nike air max, Armani，Gucci，ED,POLO clothing, Moncler Jacket • September 29th, 2011 at 6:42 am
Great post. I was checking constantly this blog and I am impressed! Extremely useful information specially the last part I care for such info much. I was seeking this particular information for a long time. I will keep the attention of your blog. Thank you and have a great day.
Brenda • September 29th, 2011 at 5:09 pm
You have some interesting interpretations on this matter and I took pleasure in reading EconoMonitor : The Wilder View » Euro Area Inflation: Gaining Momentum Below the Hood very much. After finding your website on Digg, I have included it in my bookmarks in order to share it with others.
historical romance novels • September 29th, 2011 at 5:12 pm
I just could not depart your web site before suggesting that I really enjoyed the standard information a person provide for your visitors? Is gonna be back often in order to check up on new posts
weather vane • November 7th, 2011 at 2:25 pm
Hi there! Do you use Twitter? I’d like to follow you if that would be okay. I’m definitely enjoying your blog and look forward to new posts.
Blackheads • November 10th, 2011 at 3:37 am
2011…
Hiya, I’m really glad I have found this information. Today bloggers publish just about gossips and web and this is really annoying. A good site with interesting content, this is what I need. Thank you for keeping this site, I’ll be visiting it. Do yo…
