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Europe: The asymmetric effects of weather shocks on inflation

This column studies the relationship between temperature and inflation using data on the four largest euro area economies. The findings suggest that as climate change becomes more severe weather shocks, the volatility of inflation may increase. ....

Alexander Popov , Gareth Budden , Sarah Holton , Alexandra Buist , Research Bulletin Of The European Central Bank , European Central Bank , Copernicus Climate Change Service , Copernicus Climate Change , Research Bulletin , European Central ,