The rise in the participation rate offsets all inflationary mechanisms for the time being

Several mechanisms should normally be inflationary in OECD countries: The return to a very low unemployment rate; The low productivity gains; Population ageing; Corporate concentration; The return to regional value chains. Yet (core) inflation is not rising. This shows that the rise in the participation rate (in the proportion of the working-age population in the labour market) is powerful enough to eliminate the effects of all inflationary mechanisms.