[pcmonk]

I think the answer is something like:

- the dollar is falling compared to US living expenses (US inflation)

- the euro is falling compared to the dollar (exchange rate)

- therefore, the euro is falling faster compared to US living expenses

- but the euro is not necessarily falling faster compared to EU living expenses (EU inflation)

Indeed, EU inflation and US inflation seem to be about the same, which means that the exchange rate change is not because one or the other is experiencing more inflation.