Inflation in the US today, once corrected for imputed housing costs and thereby made comparable to our HICP measure, is actually lower than in the euro area, even though the economic and monetary policy cycles in the US are several years ahead compared to the euro area.
3  The universal nature of subdued inflation is increasingly linked to favourable supply-side developments such as technological advances and globalisation of product, labour and capital markets. The resulting disinflationary factors are global in nature and largely outside the realm of individual central banks.