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Economics
Inflation & Prices

Uneven Inflation Spike Redraws Euro Zone’s East-West Divide

  • 25% spike has propelled Estonia’s price level beyond Spain
  • Wages are slower to catch up, though, hurting households

Surging inflation in smaller euro-zone nations is redrawing the economic divide between the continent’s east and west.

In the Baltic region, where inflation is the bloc’s quickest and has topped 25%, Estonia has seen the cost of goods and services leapfrog Italy and Spain since last year, making it the most expensive country in central and eastern Europe. Slovakia and Slovenia are also gaining ground and now aren’t far behind.