What accounts for the dispersion of inflation between euro-zone countries?

Our analysis focuses on Germany, France, Spain and Italy. In January 2024, inflation was: 3.1 % in Germany; 3. 4 % in France; 3. 5 % in Spain; 0. 9 % in Italy. This difference between inflation rates in different countries may be due to differences in: The growth of consumer energy prices, due in particular to the subsidies introduced since Russia's invasion of Ukraine; Nominal wage growth rates; Productivity growth rates; Changes in profit margins. We see the effects of: The fall in energy prices on Italian inflation; The sharp rise in unit labour costs on inflation in Germany and Spain; The rise in profit margins on inflation in France. So there are three different inflation models in these four countries at the start of 2024 .