One of the criteria a country must meet to join the euro area and adopt the euro is the ‘inflation criterion’. This requires that the consumer price inflation rate must not be higher than 1.5 percentage points above the three best performing EU countries. As the chart shows, in the years before adopting the euro, Slovenia, Cyprus, Malta and Slovakia all took the measures needed to achieve inflation rate convergence with the euro area. The sudden upwards trend for Cyprus and Malta in the months preceding the changeover in 2008 was due to the global hike in oil and food prices in 2007.
Source: Eurostat