These positive correlations suggest that restructuring has been caused mainly by adverse industry demand shocks rather than by positive supply shocks, although as I will highlight later, there are some exceptions. One possible source of these adverse demand shocks is increased international trade.
As for price developments, after hovering at levels well below 1% for three years, with occasional dips into negative territory, euro area headline inflation edged higher towards the end of last year and reached 2% in February. This upward movement of inflation mainly reflects increases in energy and food prices.