Why inflation seems half as low in France as in Germany

When Gérard looks at his gas and electricity bill he is upset;

when he compares it to that of Gerhard, he consoles himself.

While the INSEE consumer price index increased by 2.8% in 2021, that of Destatis, its German counterpart, jumped by 5.3%, almost double.

Would the inflationary fever have calmed down by crossing the Rhine?

The contrast is all the more striking in that the economic recovery last year was twice as rapid here as among them;

French GDP is expected to have grown by 6.8% in 2021, while German GDP has only increased by 2.9% (OECD figures).

What to lose his Latin.

Inflation and economic activity are indeed supposed to go in the same direction (prices tend all the more as business goes smoothly).

Why the hell with these disparities between the two main economies of the euro zone, of which the convergence of the inflation rates of its 19 Member States is the alpha and the omega?

Read also

First explanation...

This article is for subscribers only.

You have 83% left to discover.

Cultivating your freedom is cultivating your curiosity.

Keep reading your article for 1€ the first month

I ENJOY IT

Already subscribed?

Login