Report
Patrick Artus

The inflation profile during post-recession periods of economic recovery

There is some concern at present about the surge in inflation (more than 4 % in the United States and more than 2% in some European countries). But it is normal for there to be inflation in the period of economic recovery following a recession: During the recession, companies were unable to raise prices, which they make up for after the recession; Commodity prices fall during recessions and subsequently pick up; If the economic recovery is faster than expected, there may be bottlenecks and price increases for intermediate goods (raw materials, components, etc.). We look at the dynamics of inflation after recessions in the past and today in the United States and the euro zone. The presence of inflation after a recession is normal, for the reasons outlined above, and does not mean that a sustained period of inflation lies ahead.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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