The fall in the relative price of imports into the euro zone is playing a very important role, but is set to disappear

Since mid-2022, there has been a sharp fall in the relative price of imports into the euro zone (rise in the GDP deflator relative to import prices). This fall in the relative price of imports : Boosts corporate profit margins; Enables households to gain purchasing power by driving down headline inflation. Unfortunately, this fall in the relative price of imports will disappear in 2024 due to the rise in import prices.