This type of graph simply depicts the inflation of one of 31 countries or country agglomerates like the Euro area.
Or choose from a list of subcategories: among them are four special aggregates, 12 sub aggregates or 12 COICOP devisions.
More detailed categories are work in progress.
There are 4 major components contributing to inflation:
Energy, food, industrial goods, and services.
This particular analysis decomposes the inflation rate of the country of your choice into its 4 main components. By deselecting e.g. energy and food categories, you can easily generate a core inflation graph or analyze the impact of a single aggregate on overall inflation.
Another way of analyzing inflation data is to look at the so-called COICOP divisions. This standard UN classification enables you decompose inflation according the most common classification: COICOP.
*COICOP stands for Classification of Individual Consumption by Purpose. The above used main and sub aggregates are special aggregates based on a specific combination of four-digits COICOP classes.
Why is country A’s inflation higher than country B’s? Or vice versa? The analysis of inflation differentials between two countries enables you to understand this - in a few clicks!
This view is a very helpful tool especially for countries being member of currency union like the Euro area, when comparing the individual country’s inflation against the benchmark of overall Euro area inflation.