Heterogeneity in Food Price Inflation Convergence Across the EU : Evidence From Club Dynamics and Structural Breaks

Abstract

This study examines food price inflation rate convergence among EU27 Member States from 2005 to 2024, focusing on structural breaks, external shocks, and regional disparities. Using panel unit root tests and club convergence analysis, the findings reveal no overall convergence but identify multiple convergence clubs. Structural breaks linked to major global crises exacerbate inflation disparities. Temporary inflation alignment occurs during shocks, but long‐term convergence remains constrained by economic and policy differences. The study highlights the need for tailored fiscal and agricultural policies to enhance market cohesion. These insights contribute to understanding food price dynamics and guiding policymakers toward stability.