Philippe Martin is Dean of the School of Public Affairs at Sciences Po.
LE FIGARO.
- Advanced economies are currently facing high inflation.
How do you analyze the phenomenon?
Phillip MARTIN.
-
What is clear is that the dynamics of inflation have changed in nature.
It follows a traditional pattern when there is a cost shock, here energy: the shock is transmitted directly to inflation.
Then we saw a diffusion along the value chains.
Today, the rise in prices has spread to services, and underlying inflation (excluding petroleum products, fresh products, etc.) is driving general inflation.
But it was not driven by wages.
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Historically, wages rise late, and this is what happened in 2022 with past inflation catching up, but no anticipation of future inflation.
That would really be a price-wage loop.
From this point of view, the situation is reassuring.
From this point of view too...
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