Supply conditions have become extremely negative: What consequences?

We look at the situations of the United States, the euro zone and France. The trend in supply conditions has become highly negative: Rising prices of commodities and companies’ intermediate consumption; Various bottlenecks (semiconductors, etc.); Changes in the structure of demand, giving rise to excess demand in some economic sectors; Major hiring difficulties reported by companies. This deterioration in supply conditions may result in: Either a rise in prices; Or a fall in wages (labour costs) to offset the increase in other production costs; Or demand rationing. We examine the most likely scenario.