The inflationary dynamics started as early as 2019, with a gradual acceleration in labor costs in the United States. Since then, inflation has virtually spread to all sectors, and all countries.
55% of manufacturers surveyed by the French National Institute of Statistics INSEE in May 2022 say that their prices will rise further, a level that is five standard deviations above the long-term average. Previous peaks, in 1992 and 2008, which preceded severe recessions, had only reached two standard deviations. A survey by Ifo shows an even higher proportion of companies announcing price increases, reaching about 58%. While inflation is a complex phenomenon that has often defied economic models, one thing is clear: it’s all about the prices set by producers and paid by consumers.