Inflation in the EU shows significant divergences among member states, driven by differences in energy and food prices, national measures (e.g. price caps), and wage developments. Some countries, such as Austria, have considerably higher inflation than the Euro area average, while others are approaching the ECB‘ target.
These differences reflect the functioning of the monetary union and influence monetary policy. While inflation in the Euro area as a whole tends to decline, it varies significantly across regions, mainly due to differencies in core inflation.
