Inflation differentials in the euro area

The European Central Bank has published a report entitled "Inflation differentials in the euro area: potential causes and policy implications" prepared by the Monetary Policy Committee of the European System of Central Banks. The report analyses the size and origins of inflation differentials in the euro area since the start of Stage Three of Economic and Monetary Union and the related policy implications. Various indicators suggest that the extent of inflation dispersion in the euro area is

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