its distribution since 2018, points to a mixed picture, with some signs of easing pressures ( chart 15 ). the first feature that emerges from the heatmap is the transmission of the price pressures along the pricing chain, with “ red spots ” generally emerging first on the commodity front and then showing up in producer prices and further “ downstream ”. compared to the peaks during the re - opening phase of last year, the latest observations point to weaker pressures from the energy commodities, non - energy and non - food commodities, global and domestic economic activity and supply side bottlenecks. by contrast, stronger pressures are indicated by the indicators for food - related costs and labour market developments, in particular from the tight labour market and from wage growth. generally, producer price pressures are still elevated, reflecting recent increases in input costs. overall, the heatmap suggests still strong inflationary pressures, but some signs of easing are emerging. chart 15 inflation drivers heatmap red = risk of higher inflation ; blue = risk of lower inflation ; grey = no data. source : eurostat, world bank, sdw, haver analytics and ecb staff calculations. notes : the colours have been assigned based on where each indicator lies in comparison to past readings starting 2018 ( the historical distributions were split into 11 areas with equal empirical probabilities ). most of the variables are expressed in annual growth rates. the exceptions are pmis, unemployment rate, the global supply chain pressure index ( gscpi ) from the new york fed, the global economic conditions indicator, european commission indicator of limits to production ( insufficient demand ), capacity utilisation and labour shortages, where no transformation is applied. conclusions in this lecture, i have highlighted that the monitoring of underlying inflation is an essential input into the monetary policy process. i have emphasised that an accurate assessment of underlying inflation is especially tricky in view of the large dislocations that have hit the economy, since the energy crisis and the pandemic have generated inflation shocks that do not fit neatly into either the “ pure noise ” or “ medium term ” components of inflation but rather also plausibly contribute to a “ reverting ” component of inflation. differentiating the reverting and medium - term components of inflation the main analytical challenge and is inevitably subject to high uncertainty. there are no short cuts in the analysis of underlying inflation, which requires a comprehensive multivariate and multi - method assessment. in particular, the tracking of underlying inflation must

the international community differ depending on the eurosystem tasks involved in international relations. in particular, the ecb can play three different roles. first, the ecb is a primary and autonomous counterpart whenever the eurosystem ’ s exclusive competencies - ie monetary policy and related central banking tasks - are involved in international relations. second, with regard to issues related to the exchange rate of the euro, the ecb shares with the ecofin council the responsibility for both consultations with third parties - for example at g7 level - and communication to the general public. however, the ecb is solely responsible for deciding foreign exchange operations. third, within the limits of the eurosystem ’ s field of competence, the ecb can advise other euro area policymakers on international issues. in specific circumstances the ecb may also act as a “ catalyst for cooperation ”. this may happen when the eurosystem develops common views on issues which fall within the competence of other euro area authorities ( mainly national governments ), but in which the eurosystem has a strong institutional interest, in accordance with its statute. this applies, for instance, to issues related to the stability of the global financial markets and the architecture of the international monetary system. in dealing with these issues, the ecb may provide value added to the development of common euro area positions to be taken at the international level. rationale for cooperation the relations of the ecb with other policymakers at the international level involve a number of cooperation activities designed to increase the “ joint welfare ” resulting from their policies. generally speaking, “ international cooperation ” takes place within the relevant organisations ( eg imf ) and fora ( eg g7 ), between the competent authorities of different countries for either a given policy ( eg monetary policy ) or a set of policies ( eg macroeconomic policies ). in this context, the term “ country ” should be understood to include monetary unions such as the euro area. in principle, cooperation can include a wide spectrum of activities, namely : • consultation, which simply consists of a mutual exchange of information and views ; • surveillance, ie the systematic monitoring and assessment, by an independent organisation, of the economic policies of its members. within this context, the international community may also develop “ standards ” and “ codes ”, which constitute a form of multilateral rule - making to be implemented on a voluntary basis ; and • coordination, ie the agreement between separate policymakers to take and implement joint