Bank of Italy's Visco: Underlying Inflation Is Stubborn

The video discusses recent trends in inflation, noting a decrease in overall inflation due to falling energy prices, while core inflation remains stubborn due to past energy price increases. It highlights regional differences, particularly between Europe and the U.S., and projects future inflation trends, expecting a significant reduction by 2025. The video also examines the impact of the labor market and sectoral economic conditions, with manufacturing slowing and the service sector, especially tourism, booming in some European countries.

What has been the primary driver of the recent reduction in overall inflation?

• Increase in manufacturing output

• Decrease in energy prices

• Increase in tourism

• Decrease in food prices

Why is core inflation described as 'stubborn'?

• Due to a decrease in energy prices

• Because of a pass-through of previous energy price increases

• Because of a decrease in food prices

• Due to an increase in manufacturing output

What is the projected inflation rate by the end of 2025 according to the ECB?

• 22%

• 5%

• 10%

• 2%

What factor is contributing to the complexity of cost-push inflation?

• Falling manufacturing output

• Buoyant labor market and wage increases

• Stable energy prices

• Decreasing tourism

Which sector is experiencing a boom in Europe despite a slowdown in manufacturing?

• Construction

• Technology

• Tourism

• Agriculture