One interest rate, three inflation realities. Why Europe’s price shock is so uneven

Three countries share one currency and one central bank rate, yet their inflation rates differ by more than twofold.

In September, annual inflation was 2.7% in Finland, 3.3% in Germany and 6.1% in Lithuania, according to Eurostat’s harmonised index (HICP), published in October. The euro-area average was 3.8%. All three face the same European Central Bank (ECB) deposit rate of 2.50%.