This paper studies the recent trends in inflation in the euro area and estimates to what extent the current … inflationary pressures are driven by demand expansion and by supply side disruptions. First of all, consumer price inflation is … consumer prices, accounting for almost three-quarters of total headline inflation. The fact that price pressure comes mainly …

After almost four decades of price stability, inflation has recently approached historical highs. Initially driven by … global energy and food price increases, the magnitude of the surge in inflation caught central banks and markets by surprise … monetary policy tightening, inflation upside risks are large. How can central banks restore control – and with it their own …

Euro area inflation has been rising strongly in the wake of the COVID-19 pandemic, giving rise to concerns that there … could be second-round effects, with higher inflation leading to higher inflation expectations, which in turn lead to higher … inflation. This could result in more persistent rises in inflation. …

total government revenues. This article argues that a slight rise in inflation could even liquidate German debt. …

below the ECB’s inflation target. Therefore, a readjustment of the infl ation target seems unjustified. Furthermore, as the … ECB can expect inflation to return to its target, it possibly can accelerate tapering its unconventional monetary policy …

To gauge the breadth of current inflation and prospects for inflation returning to target, we consider disaggregated …