In the same way as the maintenance of price stability within a single country is consistent with divergences in the rate of price change among different regions and cities, price stability in the euro area is generally in line with inflation differentials among individual member countries.
Consumer spending also depends importantly on the state of the labor market, as wages and salaries are the primary source of income for most households. Labor market conditions in December were disappointing; the unemployment rate increased 0.3 percentage point, to 5.0 percent from 4.7 percent in November, and private payroll employment declined.