Statistical Breakdown of Product-specific Inflation Rates in Austria and in the Euro Zone
The study presents a statistical breakdown of inflation rates in the euro zone (except Slovenia) into a joint product-specific ("international") component and a country-specific ("national") component for each product in each country. Using a panel-econometric fixed effects model, it looks into disaggregated monthly inflation rates based on the harmonised consumer price indices for 2002–2007. In Austria, most of the accelerated inflation is driven by the international component. Some product groups, however (milk, cheese and eggs, oils and fats, products for housing maintenance, electricity, gas, apparel and shoes, pharmaceuticals), show a marked country-specific contribution in 2007. The publication contains an update for the Euro area and Austria for 2008.