Euro area inflation rose to 2.5% in March from 1.9% in February. The key point is not just the increase, but where it occurred. Inflation rose sharply in the largest member states and became more uneven across countries. That strengthens the case for ECB action but makes agreement harder. The first national data show that the increase was concentrated in the biggest economies (see table below). Inflation rose by 1 percentage point in Spain to 3.3%, by 0.8 percentage points in Germany to 2.7%, and by 0.8 percentage points in France to 1.7%. In Italy, it increased more modestly, from 1.5% to 1.7%. While each member of ... (full story)