The euro area pandemic inflation: A tale of supply chains, household inflation expectations, and firm pricing power

Viral Acharya, Matteo Crosignani, Tim Eisert, Christian Eufinger After a disinflationary period that spanned over two decades prior to the pandemic, countries in the euro area suddenly faced rising inflation in 2021. This column discusses how this post-pandemic inflationary episode, initially confined to products affected by supply-chain bottlenecks, generalised into a broad-based and persistent phenomenon. […]