Visualisation and Analysis of Inflation Data

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.

The here presented 12 categories, follow the structure of the 4 main aggregates above, just in a more detailed way:

– Energy is split into two subcategories: liquid fuels, and electricity & gas,
– Goods are split into durable, semi-durable and non-durable goods,
– Food into processed and unprocessed, and
– Services are split as well in 5 sub aggregates.

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.

Please note:
*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.