Breaking down inflation in the United States, the United Kingdom and the euro zone
We break down inflation in the United States, the United Kingdom and the euro zone into three components: Inflation that results from labour costs; Inflation that results from commodities, transport and components used by companies; Inflation that results from rising corporate profit margins. We then find that : In the United States, with headline inflation of 7.5%, 3.0% results from wages, 1.5% from commodities (in the broad sense) and 3.0% from profit margins; In the United Kingdom, with headline inflation of 5.4%, 4.1% results from wages, 1.3% from commodities ( in the broad sense ) and 0% from profit margins; In the euro zone, with headline inflation of 5.1%, 2.0% results from wages, 2.6% from commodities (in the broad sens e) and 0.5% from profit margins. So there are significant differences between the United States , the United Kingdom and the euro zone: the significant role of the rise in profit margins in the United States, the significant role of wage-push inflation in the United States and the United Kingdom.