How can eu countries have different inflation rates when they all use euros? Do euro have different value in each country?

807 views

Edit: Thank you all for the answers.

In: 803

14 Answers

Anonymous 0 Comments

Not all EU countries use Euros.
The UK (prior to leaving), Scandinavia, Poland and a several other easten European countries don’t use the Euro.
In total its only 19 out of 27 EU countries that use euros.

Europe is also large with varied terrain, making wine in france is easy to get around most of france but to get to lets say the north of Poland it has to travel for a few days, which is taken into account for costs due to it being an import now.

The countries also have different industries, a country that manufactures less cars for example will have a much smaller income from that alone, which effects their local economy and pricing.

Similar to how different US states have different item costs, transport isn’t cheap and the climate/land is different which limits industries in various ways.

You are viewing 1 out of 14 answers, click here to view all answers.