Inflation differentials in the Euro area are mainly due to a sustained divergence of wage developments across the Euro … inflation using unit labour cost (ULC) growth and applying PANIC (Bai and Ng, 2004) and cluster procedures (Hobijn and Franses …

This study analyses the impact of economic catching-up on annual inflation rates in the European Union with a special … Balassa-Samuelson effect is not an important driver of inflation rates. By contrast, we find that the initial price level and … regulated prices strongly affect inflation outcomes in a nonlinear manner and that the extension of Engel's Law may hold during …

We study the behavior of inflation rates among the 12 initial Euro countries in order to test whether and when the … this new procedure to Euro area inflation, we find strong and lasting evidence of convergence among the inflation rates … the occurrence of the single currency. After the 2008 crisis, Euro area inflation rates follow the ECB's price stability …