Abstract  2

Non-technical summary  3

1 Introduction  5

2 Domestic inflation  7

2.1 A brief overview of the previous methodology  7

2.2 Update of the import contents with FIGARO data  8

2.3 Update of identification of domestic items via import content thresholds  12

2.4 The updated domestic inflation indicator  15

3 Supercore inflation  20

3.1 A brief overview of the previous methodology  21

3.2 An updated Supercore indicator for the euro area  22

Box 1 Alternative ways to estimate euro area cyclical inflation  30

4 Conclusions  33

5 Bibliography  34

6 Appendix  36

Abbreviations  40

Acknowledgements  41