Price-setting Microdata Analysis Network (PRISMA)

The Price-setting Microdata Analysis Network (PRISMA) is a research collaboration within the Eurosystem whose mandate expired in 2022. Its main objective was to use individual price data to gain a deeper understanding of price formation in the EU and to better understand the dynamics of monetary policy transmission.

PRISMA built on the analyses that had emerged from the Inflation Persistence Network (IPN) in the first half of the noughties, but brought important innovations, notably in the form of the use of new data sources (scanner data, automatically downloaded data from online shops) and more robust linkages between macroeconomic models and microeconomic empirical findings.

In the aftermath of the COVID 19 pandemic emergency, PRISMA also addressed the impact of the massive economic shock caused by the pandemic on inflation. Further information on the results of the PRISMA cooperation is available on the ECB’s website