These factors can be jointly illustrated through supply-demand decompositions for goods inflation and services inflation, as is shown in Charts 7 and 8. [17] For both goods and services, supply factors continue to exert a strong influence on inflation.
However, this is out of reach at the European level for the time being. Another way is to eliminate unreliable methods for quality adjustments so that the applied methods by individual “price collectors” will on balance result in unbiased estimates of the true price change.