At the same time, the core services component has remained subdued, benefiting from persistently falling telecom tariffs resulting from competition enhanced by reforms in that sector. It may also suggest the absence of significant overall aggregate demand pressures to date. Falling noncore inflation reflects reduced agricultural price increases, as well as contractions in the index for energy and government-determined prices.
Gutierrez, German and Thomas Philippon (2017), “Declining Competition and Investment in the US,” CEPR Discussion Paper No. 12536. Gutierrez, German and Thomas Philippon (2018), “How EU Markets Became More Competitive than US Markets: A Study of Institutional Drift,” CEPR Discussion Paper No. 12983. Lane, Philip R. (2018), “Globalisation and the Irish Economy: A Macro-Financial Perspective,” Geary Lecture, Economic and Social Research Institute.