The shift in the structure of demand and the distortion of the relative prices of goods and services

In OECD countries over the past two years, the structure of demand has shifted heavily from services to goods. This explains the rise in the prices of what is used to produce goods: energy, other commodities, transport, semiconductors. But this rise in the cost of producing goods must lead to a rise in the price of goods relative to services, which will lead demand to shift in the opposite direction from goods to services and will help drive down commodity prices and inflation. We should therefore now see a trend towards a normalisation of the structure of demand coupled with a decline in inflation.