Not all prices disinflate alike: disentangling the dynamics of sticky and flexible-price items

This box draws on micro price evidence on the frequency of price adjustments to disentangle the roles of sticky and flexible-price items in shaping recent disinflation dynamics in the euro area. Inflation of sticky core items has eased only gradually, while flexible core inflation has returned closer to its pre-pandemic average. Among subcategories, flexible goods drove the surge in non-energy industrial goods inflation, while the persistence of services inflation reflects contributions from both sticky and flexible-price items.

And yet we move: evidence on job-to-job transitions in the euro area

Job-to-job transitions in the euro area are a complementary indicator to standard labour market statistics. These flows, defined as transitions between jobs without a spell of unemployment, capture important adjustment mechanisms in addition to the unemployment rate. Using administrative data for Germany, Spain and France, our analysis highlights the procyclical nature of job-to-job transitions: mobility declines during downturns and rises during expansions. Heterogeneity is also evident across occupations and age groups.

New technologies like AI come with big claims – borrowing the scientific concept of validity can help cut through the hype

Closely examining the claims companies make about a product can help you separate hype from reality. Flavio Coelho/Moment via Getty ImagesTechnological innovations can seem relentless. In computing, some have proclaimed that “a year in machine learning is a century in any other field.” But how do you know whether those advancements are hype or reality?

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