What is the inflation inertia (United States, United Kingdom, euro zone, Japan)?

The degree of inflation inertia reveals many aspects of the functioning of the economy: the ability of companies to pass their costs on to their prices, the ability of employees to obtain wage increases that offset increases in consumer prices. We measure the degree of inflation inertia by the speed at which increases in import prices (which are the initial inflationary shock) are transmitted to increases in core inflation or in the GDP deflator (which represent domestic and internal inflation). We then see that inflation inertia is: Strong in Japan; Intermediary in the euro zone; Very low in the United States and the United Kingdom. In the United States and the United Kingdom, companies have significant pricing power and employees quickly obtain compensation for price increases.