Over time, inflation broadened substantially, creeping into most goods and services, and pushing up underlying inflation to historically high levels, with no clear signs of reversal so far (Slide 3). ECB staff analysis suggests that both demand and supply have made a significant and broadly even contribution to the recent rise in underlying inflation in the euro area (Slide 4).
“State of play” reports from countries facing critical developments can provide important information about potential vulnerabilities in other countries. However, in the macroprudential area too, it is not just a question of bilateral cooperation between the individual national institutions. Strategies and tools have to be developed to enable a structured exchange of information to take place and to harmonise courses of action.