Additionally, we compared national and harmonised inflation rates in the euro area.
The key difference between the national and the harmonised consumer basket
of Eurostat is that the latter does not capture imputed rents for owner-occupied
property. As a result, weights for rents and housing in the harmonised basket
are much smaller than those in the national statistics.
Of the euro countries,
Germany is assigned the largest weight for rents and housing, due to its
particularly high tenant rate. Consequently, the measurement of European
inflation tends to be distorted to the downside, at least during a house price