Report
The absence of inflation in the most recent period has not had the same origin in the United States as in the euro zone
Core inflation remains low and stable in both the United States and the euro zone. This has enabled central banks to keep interest rates markedly lower than the growth rate. But the origin of inflation in the most recent period has not been the same in the United States as in the euro zone . In the United States, unit labour costs are not accelerating despite the very low level of unemployment, probably because of employees' lack of bargaining power. The absence of inflation in the United States is therefore a characteristic of the labour market; In the euro zone, the pressure in the labour market has led to an acceleration in unit labour costs, but this has not led to a faster rise in prices, probably because of the intensity of internal and external competition. The absence of inflation in the euro zone is therefore now a characteristic of the goods and services market.
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Natixis
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Patrick Artus
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