IDEAS home Printed from https://ideas.repec.org/p/een/camaaa/2025-17.html
   My bibliography  Save this paper

Personal Inflation Rates in the Euro Area

Author

Listed:
  • Michal Marencak
  • Giang Nghiem

Abstract

Using granular household-level spending data from the ECB Consumer Expectations Survey, we document new stylized facts on the heterogeneity of personally realized inflation across different inflation regimes in the euro area. During the period of low inflation (April 2020 – April 2021) and the period of sticky inflation (January 2024 – October 2024), homeowners, high-income households, and older individuals experienced lower inflation. However, during the inflation surge (July 2021 – October 2023), this pattern reversed as rising energy and food prices disproportionately affected these groups, outweighing their lower spending shares in these categories. Personally experienced inflation accounts for a significant share of the variation in inflation perceptions, inflation expectations, and broader macroeconomic expectations, including personal income expectations. Moreover, these relationships differ notably across inflation regimes.

Suggested Citation

  • Michal Marencak & Giang Nghiem, 2025. "Personal Inflation Rates in the Euro Area," CAMA Working Papers 2025-17, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:camaaa:2025-17
    as

    Download full text from publisher

    File URL: https://crawford.anu.edu.au/sites/default/files/2025-03/17_2025_Marencak_Nghiem.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    personal inflation rate; expectations; consumer expectations survey;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:een:camaaa:2025-17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cama Admin (email available below). General contact details of provider: https://edirc.repec.org/data/asanuau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.