Although the population of the US is comparable with that of the euro area1, the US still generates a higher GDP2. Households have a considerably higher gross disposable income.3 Yet the gross savings of households in the euro area (as a percentage of their gross disposable incomes, HGDI) are higher than in the US4.
Soaring energy and food prices, demand pressures in some sectors owing to the reopening of the economy, and supply bottlenecks are still driving up inflation. Price pressures have continued to strengthen and broaden across the economy and inflation may rise further in the near term.