Understanding the relative development of goods and services inflation

Catalina Martínez Hernández, Mario Porqueddu, Blanca Prat I Bayarri and Lourdes Maria Zulli Gandur

Economic Bulletin Boxes, 2025, vol. 2

Abstract: Historically, stronger dynamics in services prices than in non-energy industrial goods (NEIG) prices have led to a persistent positive gap between services and NEIG inflation rates. However, the relative price of goods versus services rose rapidly in 2021-2022 before subsequently falling back. This box reviews this episode and examines whether the pre-pandemic trend in this relative price development provides a good benchmark for future developments, also taking into account the potential impact of structural factors related to deglobalisation, digitalisation, demographic trends and climate change. JEL Classification: E31, E52

Keywords: HICP; HICP excluding energy and food (search for similar items in EconPapers)
Date: 2025-03
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbbox:2025:0002:6

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