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

Question

Edit: Thank you all for the answers.

In: 803

Answer 1

Inflation rate is based on what you can buy with a given amount of currency (or, equivalently, how much cost a given item).

For example, if in NY a pint of beer went from 6$ to 8$, that’s a 33% inflation rate on beer in NY. If, meanwhile, it went from 6$ to 9$ in SF, that’s a 50% inflation rate on beer in SF. Even if they both use the same currency.

“THE inflation rate” is based on a selected cart of items that represents basically how much all the prices of stuff you need (incl. rent, utilities, gas, food, etc.) got higher. Since prices are and change differently in different places, inflation can be different even if everyone involved uses the same currency.