Why has inflation become sticky?

In the United States and the euro zone, the reaction of core inflation to the countries’ cyclical position has become increasingly weak over time. Recessions reduce core inflation less than in the past; low unemployment increases inflation less than in the past. Wh at accounts for the stickiness of inflation? The decline in wage earners’ bargaining power, which has reduced the reaction of wages to the cycle? Yes, certainly. The use of contracts that set wages and prices over longer periods of time? No. Stable inflation expectations? Yes. Strong international competition and the globalisation of production, link ing prices to the global cycle and not to domestic cycles? No.