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Regional inflation dynamics within and across euro area countries and a comparison with the United States

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  • Kirstin Hubrich

Abstract

Regional inflation developments within euro area countries are characterised by considerable heterogeneity. This may be related to differences in regional economic developments and structural characteristics. Monitoring regional inflation rates improves understanding of the monetary policy transmission mechanism. Regional inflation dynamics are also of importance for aggregate euro area-wide inflation developments. Interestingly, the degree of heterogeneity in regional inflation rates in the euro area seems to be comparable to that observed in the United States, the latter representing a long-established common currency area. JEL Classification: E3

Suggested Citation

  • Kirstin Hubrich, 2008. "Regional inflation dynamics within and across euro area countries and a comparison with the United States," Research Bulletin, European Central Bank, vol. 7, pages 7-9.
    • Handle: RePEc:ecb:ecbrbu:2008:0007:3
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    Keywords

    inflation dynamics; euro area;

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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