Purchasing power. Inflation will last, says Medef boss Geoffroy Roux de Bézieux

Medef President Geoffroy Roux de Bézieux emphasizes in an interview given to the Sunday newspaper that France “entered an economy of lasting inflation” the day after the publication of a new acceleration in the rise in prices.

Unrivaled level since 1985

In April, inflation reached 4.8% over one year, a level not seen since November 1985, according to an initial estimate by INSEE. In the euro zone, the figure even reached 7.5% for the same month.

“It’s an environment that most business leaders have never known,” worries the boss of Medef, who reiterated his request for a reduction in production taxes. “Nor will the population as a whole, who will be confronted – through the inevitable rise in interest rates – with rising prices in the crucial housing sector,” he added.

“Rise in energy prices”

“This inflation is mainly due to the increase in energy prices”, recalled this Saturday the European Commissioner for the Internal Market, Thierry Breton, during an interview with France Inter radio. He also notes “an inflationary dynamic” in the euro zone.

Ukraine et Covid-19

According to him, a lot of uncertainty weighs on the European economy because of the conflict between Ukraine and Russia and also in connection with “the ruptures of the supply chains”, in particular in China, he underlined. “Many of our factories and value chains are at a standstill given the somewhat radical management of the Chinese authorities who are closing entire sections of the economy”, in Shanghai for example, to fight against the Covid-19 epidemic. 19.

Supply chain disruptions have been a key driver of rising prices globally since the Covid-19 pandemic, where lockdowns in different areas and at different times created bottlenecks.

Source: Le Progrès : info et actu nationale et régionale – Rhône, Loire, Ain, Haute-Loire et Jura | Le Progrès by www.leprogres.fr.

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