Large and infrequent price changes in Euro Area impact inflation rates
The study looked at how prices change in the euro area when inflation is low and stable. They found that prices in core sectors don't change often, with only about 12% of consumer prices changing each month. Producer prices change more frequently, especially for intermediate goods and energy. Price changes can be big and vary a lot. Prices are more likely to change when they are far from where they should be. Overall, small changes in prices don't affect inflation much, but shifts in the average size of price changes do.