Some of these are temporary in nature and have already subsided, such as the cold winter weather in large parts of the euro area. But there may also be broader supply factors at play. In particular, there are increasing signs that capacity constraints are starting to bind in some countries and sectors.
Capacity utilisation stands above its long-term average in the euro area and in all large economies. The question is how much, and how quickly, firms will be able to increase supply to relieve these limits. Adjustment is already taking place in the labour market.