NEW YORK, August 15, 2022--(BUSINESS WIRE)--KBRA releases research that examines the comparative retail sales performance across the U.S., euro area, and UK. As global central governments debate the appropriate level of monetary policy tightening in the current post-pandemic, energy shock inflationary environment, a closer look at contributors to core inflation provides a lens to the role of demand factors in spurring inflation. KBRA found that demand-side factors are contributing to the inflationary impulse in the U.S. compared to Europe, where it appears to be more contained, albeit with dispersion.
U.S. retail sales remain elevated compared to the euro area and the UK.
There is a range of resiliency across European retail sales, which partly reflects the varying levels of shocks in individual countries.
Europe’s consumption basket is more skewed toward food than in the U.S., a feature that may contribute to significant erosion in purchasing power among European consumers.
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Joan Feldbaum-Vidra, Senior Managing Director
+1 (646) 731-2362
Mauricio Noé, Co-Head of Europe
+44 (20) 8148-1010