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Author: Jorge Uxó González Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Like in other European countries, several supply shocks (bottlenecks related to the end of the pandemic, tensions in international gas and oil prices, and war in Ukraine) have led to a rise in the inflation rate in Spain since March 2021. This has been amplified by the functioning of energy markets, especially electricity, and price increases have spread progressively to other sectors. As a result, the forecast average inflation in 2022 is 8.5%, similar to the Eurozone average. Until August 2022, Spain had a year-on-year inflation rate above this average, but the trend has changed: in October, inflation fell by 3.4 pp in Spain, while it had risen by 1.6 pp in the monetary union. Spain was the economy with the second lowest inflation. The authorities have adopted significant measures to reduce inflation, especially in energy (capping gas in the electricity market, limiting the gas price for consumers in the regulated tariff, lowering indirect taxes, or discounts for vulnerable households) and public transport and housing rents. Other measures include transfers to the most affected households and economic sectors to offset the effects of inflation. Despite this, weak nominal wage growth and the pass-through by firms of higher costs to their prices (maintaining or increasing profit margins) are leading to an unequal distribution of the effects of inflation, which wage earners mainly bear. Changing this situation should be the focus of economic policy from now on.
Author: Jorge Uxó González Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Like in other European countries, several supply shocks (bottlenecks related to the end of the pandemic, tensions in international gas and oil prices, and war in Ukraine) have led to a rise in the inflation rate in Spain since March 2021. This has been amplified by the functioning of energy markets, especially electricity, and price increases have spread progressively to other sectors. As a result, the forecast average inflation in 2022 is 8.5%, similar to the Eurozone average. Until August 2022, Spain had a year-on-year inflation rate above this average, but the trend has changed: in October, inflation fell by 3.4 pp in Spain, while it had risen by 1.6 pp in the monetary union. Spain was the economy with the second lowest inflation. The authorities have adopted significant measures to reduce inflation, especially in energy (capping gas in the electricity market, limiting the gas price for consumers in the regulated tariff, lowering indirect taxes, or discounts for vulnerable households) and public transport and housing rents. Other measures include transfers to the most affected households and economic sectors to offset the effects of inflation. Despite this, weak nominal wage growth and the pass-through by firms of higher costs to their prices (maintaining or increasing profit margins) are leading to an unequal distribution of the effects of inflation, which wage earners mainly bear. Changing this situation should be the focus of economic policy from now on.
Author: Tamás Szemlér Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Hungary has a history of high inflation rates. After the transformation period inflation reached up to 35% in the early 1990ies. Since then, economic policy measures contributed to signifi-cantly lower inflation and during the mid-2010s it was even close to zero. Inflation rates have begun to rise even before the war in Ukraine, however, the rise of inflation accelerated in 2022 leading to a (year-on-year) inflation rate (HICP) of almost 19% in August 2022. The rise in energy prices hit Hungarian households especially hard, since the government's "overhead reduction" program (a measure to shield households from the development of the energy prices introduced in 2013) had to be modified. Among the measures that were introduced to cushion the effects of inflation on households were various forms of price caps, e.g. for food prices, energy prices (electricity and gas, only up to a certain threshold) and fuel prices. Regarding the wage setting process one has to keep in mind that trade unions are rather weak in Hungary and only around one in five persons work at an establishment where a collective wage agreement is in place.
Author: Maciej J. Grodzicki Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Inflation in Austria started to rise from mid-2021 during recovery from the CORONA crisis. The Russian invasion in Ukraine and the heavy increases in energy prices made things worse and brought inflation to over 10%. The government did not enter direct formal negotiations with social partners but subsequent anti-inflation packages met many demands made by social partners. The attempt to influence wage negotiations via a tax exemption for one-off payments failed as they were not widely used in collective agreements. One-off payments are not suitable to compensate for permanent real wage losses. Current wage negotiations are tougher than usual, requiring long negotiation rounds including the thread of industrial action. The policy of unions to base their demand on past inflation allows for a substantial delay in nominal wage increases. The government has not yet included more structural reforms to fight high inflation, like direct price controls, changes to the design of markets, or reforms of the automatic housing rent indexation. The wage setting system in Austria is still working but it will remain difficult to reach agreements, especially as a substantial part of the real wage losses has to be recovered over the coming years. A stronger use of regulatory measures and direct public involvement in the energy, housing and potentially the food price sector might be required if the current energy supply crisis and the transformation to a low carbon economy should be managed in the future.
Author: Wim Suyker Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Dutch inflation has risen steeply recently, despite unprecedented cuts in energy taxes and VAT, to a record high of 17% in September 2022. Energy has been by far the major driver of the inflation surge, but inflation has been broadening in 2022, with food price rises above 10% since July and core inflation at 6.0% in September. There is a sizeable difference between income groups regarding the impact of inflation. In September, Dutch inflation exceeded that of the euro area by 7%-point. This is however for a considerable part due to differences in the way gas and electricity prices are measured. The year-on-year increase of negotiated wages was up to 3.6% in September 2022. However, with the pick-up of nominal wages substantially lagging that of consumer prices, real wages are dropping at a record speed. The corporate mark-up is relatively stable. Government has taken substantial measures to cushion households and companies from the effects of high inflation, with budgetary costs of 1.0% of GDP in 2022 and 3.4% in 2023. In 2022, the main measures were cuts in energy taxes, but an energy allowance of 1300 euros for low income groups was also introduced. In 2023, by far the main measure will be an energy price cap. The government deficit may rise from 1.1% of GDP in 2022 to close to 4% of GDP in 2023. The cost of living crisis has not lead to formal talks about a social pact. This is in contrast with the economic crisis in the 1980s, which led to the Wassenaar Agreement.
Author: Chrēstos Pierros Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
French consumer price inflation (as measured by the HICP) rose by 6.2% in September 2022 as compared to September 2021, against 10% in the euro area. Inflation rose less rapidly in France than in the euro area primarily due to a less rapid rise in energy prices: energy prices contributed to raise annual inflation by 1.9 percentage points in France as compared to 4.4 at the euro area level. Energy price inflation is lower in France partly because the economy is less reliant on gas than other euro area economies, but even more due to significant fiscal measures. The "tariff shield" on gas and electricity prices introduced at the end of 2021 and the rebate on fuel prices have strongly limited inflation. The fact remains that the French economy has been hit by a huge energy shock of the size of the first oil shock in 1974, i.e. amounting to around 3% of GDP. This energy shock is mainly absorbed by government finances, through substantial fiscal measures (3.3 percent of GDP in 2022-23), but also by employees who are suffering a record fall in real wages (-2.2% in real terms in the second quarter of 2022 as compared to a year earlier). Profit margins have remained rather stable since the last quarter of 2021 when inflationary pressure became visible, mainly because real wages cuts have offset productivity losses. In 2023, we expect nominal wages to accelerate (+3.4% in 2022 and +3.8% in 2023), which would remain below inflation (5.3% in 2022 and 5% in 2023). According to our estimates energy price inflation by itself would reduce French GDP by 1.4 percentage points in 2022 and 3.3 in 2023, but fiscal measures introduced to counter the impacts of the energy crisis will soften the economic shock by 0.8 percentage points of GDP in 2022 and 1.5 in 2023.
Author: Jorge Uxó González
Author: Jorge Uxó González
Author: Tamás Szemlér
Author: Andrew Watt
Author: Norge Uxó
Author: Maciej J. Grodzicki
Author: Giuseppe Simone
Author: Mathieu Plane
Author: Josef Zuckerstätter
Author: Wim Suyker
Author: Chrēstos Pierros