Notwithstanding the above actions which are based on national responsibility, euro area wide policy instruments are necessary to provide risk-sharing and enhance solidarity in order to cope with large shocks.
Oil prices have added a great deal of volatility to the overall price index. At times, sharp spikes in oil prices raise overall inflation, which is then reversed when those prices increases moderate. Yet, since early 2009, when oil prices fell to about $ a barrel, the trend has been upward.