After falling in 2020 in the main Eurozone economies, inflation showed a significant upswing in 2021. This rise was mainly due to the rebound in energy prices, which had fallen to very low levels in 2020. In 2021, two types of country profi les stand out. One the one hand, Germany and Spain saw a sharp rise in inflation which exceeded its pre-crisis average, while on the other hand, France and Italy saw more moderate increases. For Germany, in addition to the base effect of the one-off cut in VAT in H2 2020, the carbon tax introduced at the beginning of 2021 contributed to pushing infl ation upwards, whereas in Spain the rise was driven by electricity consumer prices, which are highly reactive to variations in production prices. These rises are likely to be passed on to prices of products other than energy to a greater extent in coming months. The rise in consumer prices does not seem to be having a knock-on effect on wages for the moment, however.