Inflation on the Rise: Impact on US and Euro Area Economies
Inflation rates in the United States and the euro area have been on the rise recently, driven mainly by energy prices. US inflation, excluding food and energy, has surpassed pre-pandemic levels, while euro area inflation remains below. Short-term inflation expectations have increased but are expected to decrease in 2022. The current inflation spikes are likely due to temporary factors, with no clear signs of a permanent increase in price pressures.