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Personal Inflation Rates in the Euro Area

Author

Listed:
  • Michal Marencak

    (National Bank of Slovakia)

  • Giang Nghiem

    (Leibniz University Hannover)

Abstract

Using ECB Consumer Expectations Survey microdata, we construct household-level inflation measures for the euro area. Four findings emerge. (1) Personal inflation varies systematically across households, countries, and over time, with disparities widening markedly during the 2022–23 inflation surge. (2) Greater dispersion in personal inflation is closely associated with stronger disagreement in both perceived and expected inflation. (3) A one-percentage-point increase in personal inflation raises one-year-ahead inflation expectations by up to 0.2 percentage points. (4) Personal inflation affects consumption primarily through inflation expectations channel.

Suggested Citation

  • Michal Marencak & Giang Nghiem, 2025. "Personal Inflation Rates in the Euro Area," Working and Discussion Papers WP 10/2025, Research Department, National Bank of Slovakia.
    • Handle: RePEc:svk:wpaper:1125
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    References listed on IDEAS

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    Cited by:

    1. Ondrej Kusenda & Michal Marencak, 2025. "Attention to food prices and the upward bias in inflation expectations," Working and Discussion Papers WP 9/2025, Research Department, National Bank of Slovakia.

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    More about this item

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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