On the one hand, as I have just explained, differences in inflation rates among euro area countries had to be expected. They are in effect partly the result of the completion of the internal market and the creation of the single currency itself.
On the other hand, if differences in inflation rates are quite large, they need a thorough examination of the underlying reasons as well as appropriate economic policy action at the national level. The single monetary policy and the establishment of a more stable price environment in the euro area as a whole have been accompanied by a considerable degree of narrowing in inflation differentials.