The study looked at how changes in exchange rates affect prices of imports in the Euro area and its largest countries. They found that the impact of exchange rate changes on prices has been decreasing over the past 20 years. Different countries in the Euro area have varying levels of exchange rate pass through, with Germany having the lowest and Italy the highest. Italy also did not show a decline in pass through over time. These differences suggest that domestic market structures in the Euro area countries are not uniform.