Inflation in the United States is completely different from inflation in the euro zone

Year-on-year headline inflation was 3.4% in April 2024 in the United States and 2.6% in May 2024 in the euro zone. But we must realise that the nature of inflation is very different in the United States and the euro zone: in the United States, inflation results from the inclusion of rents imputed to homeowners in the price index and from the rise in corporate profit margins; in the euro zone, inflation results from rising wages and a lack of productivity gains. Disinflationary forces are also different: in the United States, it is productivity gains; In the euro zone, it is the fall in the price of imports, but this fall will gradually disappear in 2024.