Author: Chrēstos PierrosPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Inflation and Counter-inflationary Policy Measures: The Case of Greece
Author: Chrēstos PierrosInflation and Counter-inflationary Policy Measures
Author: Jorge Uxó GonzálezPublisher:
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.
Inflation and Counter-inflationary Policy Measures: The Case of Spain
Author: Norge UxóInflation and Counter-inflationary Policy Measures: The Case of Italy
Author: Giuseppe SimoneInflation and Counter-inflationary Policy Measures: The Case of France
Author: Mathieu PlaneInflation and Counter-inflationary Policy Measures: The Case of Germany
Author: Andrew WattInflation and Counter-inflationary Policy Measures: The Case of Austria
Author: Josef ZuckerstätterInflation and Counter-inflationary Policy Measures: The Case of Poland
Author: Maciej J. GrodzickiInflation and Counter-inflationary Policy Measures: The Case of Hungary
Author: Tamás SzemlérInflation and Counter-inflationary Policy Measures
Author: Chrēstos PierrosPublisher:
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.