Tracking inflation’s breadth in the eurozone
This chart visualises the breadth of price increases in the 20-nation eurozone over the past four years.
It does this by looking at annualised quarter-on-quarter inflation rates and then “bucketing” every nation into one of four segments: less than 2 percent in green, 2 to 4 percent in amber, 4 to 8 percent in red, and greater than 8 percent in dark red.
The difference between the pre-pandemic era and the inflationary episode that began in 2021 is stark. Up until April of 2021, the norm was that 70 percent of the nations in the eurozone were probably experiencing very little inflation.
By the spring of 2022, all of the nations in the currency bloc were in the two most inflationary buckets.
While 2023 has seen a broadly disinflationary trend as tighter monetary policy takes hold, inflation hawks will note the renewed spike that occurred in April and May.