Well beyond 5.3%, inflation is already evident in an explosion of the industrial producer price index, which has jumped 25% in one year.
This increase has not yet been passed on to the rest of the economy, but it will have two consequences: an aggravation of our loss of competitiveness (the record trade deficit of 100 billion over twelve months already illustrates this) and an increase in the poverty for low-income households and retirees.
The loss of purchasing power of the French and the deterioration of our exports have consequences that we are already seeing on French growth: the catch-up hoped for by the government is not there.
Far from the 4% growth expected by Bruno Le Maire, it was zero in the first quarter and will be almost zero in the second (0.2%).
So there is urgency.
However, faced with this emergency, the President of the Republic is playing for time
Finally, the inflation observed in Europe and the United States will force central banks to raise their key rates.
The Fed started and the European Central Bank…
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