This box draws on micro price evidence on the frequency of price adjustments to disentangle the roles of sticky and flexible-price items in shaping recent disinflation dynamics in the euro area. Inflation of sticky core items has eased only gradually, while flexible core inflation has returned closer to its pre-pandemic average. Among subcategories, flexible goods drove the surge in non-energy industrial goods inflation, while the persistence of services inflation reflects contributions from both sticky and flexible-price items. The recent persistence of sticky core inflation underscores the roles of past cost shocks and elevated wage pressures. In view of its close link to long-term inflation expectations and the moderation of wage pressures, sticky core inflation is likely to disinflate further.
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