描述
The inflation rate measures the extent of the increase in the average level of prices, typically assessed using the Consumer Price Index (CPI). It is calculated as the annual percentage change to monitor fluctuations in price levels and variations in the purchasing power of money. An increase in the inflation rate signifies a rise in overall price levels, reducing purchasing power, a phenomenon known as inflation. Conversely, a negative growth rate indicates deflation.
In recent years, the inflation rate in the Euro area has shown a significant decline. The International Monetary Fund (IMF) projects that inflation in the Euro area will drop below 2% after 2026, reflecting concerns about slowing economic growth.