“Have we reached the peak of inflation? Ecorama. “. Editorial by Charles SANNAT – Insolentiae

My dear impertinents, dear impertinents,

“According to initial Eurostat estimates, the symbolic threshold of 10% inflation has now been reached in the euro zone in September. Does this new record call for others? »

This was the subject of yesterday’s Ecorama show where we developed this subject and tried to answer. Has the peak of inflation been reached?

That is the question as the English say, and the English teachers in France!

In Normandy, the answer to this kind of question is always the same.

Maybe yes, maybe no!

Not that I’m doing my basic Norman who doesn’t want to answer the question frankly, it’s that everything will depend!

Basically what I explain again in this video is that in Europe, it is less true for the United States, most of the rise in prices and inflation is linked to the surge energy and gas prices but also the fall in the euro against the dollar.

Rate hikes will only have a fairly limited effect on the rise in energy prices since it is not the rates that bring in more gas.

No, the question is whether we are going, for example in Europe, to set up a general price shield for individuals, of course, but also for businesses.

If the States freeze energy prices, then we are not very far from the peak of inflation.

If European states let companies die and do nothing, we will not only have more inflation but also more unemployment. A lot of unemployment.

It will not be “stagflation”, it will be downright “recessflation”. A recession and inflation. Terrible for household purchasing power.

In a normal world, where people were consistent, where policy makers weren’t suicidal, we should be close to the peak of inflation, because they should all come to understand quickly now, even if we have to explain to them for a long time, that to go down inflation in Europe, it is not necessary to raise the rates so much as to lower the price of energy bills.

If those who have difficulty understanding today understand this and put in place a fixed energy price, then we are close to the peak.

If they don’t want to do it, then we are still far from it and the worst is yet to come.

It is already too late, but all is not lost.

Prepare yourselves !

Charles SANNAT

“Insolentiae” means “impertinence” in Latin
To write to me charles@insolentiae.com
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