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This inflation that the government will do everything to aggravate

This inflation that the government will do everything to aggravate
Written by madishthestylebar

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by Hashtable.

The small figures from INSEE are slowly accumulating and all point in the same direction: inflation is no longer negligible, it continues to grow and those who learnedly explained a few months ago that the growth observed at the end of year 2021 was transitional very officially stuck their finger in the eye to the shoulder blade. We are coming into the middle of 2022, inflation continues to grow, and those who were shoulder blade continue to sink.

Thus, over the last twelve months, prices have soared on pasta (+15%), frozen meats (+11%), flour (+10%), oils (+10%), mustard (+ 9%), coffee and dried fruit (+8%), minced meat (+8%) or cooked meals (7%). Even more embarrassing: the trends observed during supermarket negotiations for the next quarter (summer 2022), inflation could reach and exceed 5% in the coming months. As a reminder, the inflation observed in April would be 4.8%.

Of course, this price increase weighs all the more on low-income consumers who have no leeway to adapt their consumption, already cramped in a country where taxes, levies and plethoric regulations guarantee a power of particularly constrained purchase. In concrete terms, the savings of the French people are therefore put to use, all the more so since the rates of remuneration of these on traditional accounts (passbook A, various savings plans, for a total of more than 480 billion d euros) are microscopic and well below observed inflation.

At the start of the year, some noted more or less cheerfully that outstanding savings in France had continued to climb in the last months of 2021 with 165.8 billion euros saved on various media according to data published by the Banque de France. France, i.e. a surplus of more than 55 billion euros deposited compared to the situation which prevailed before the pandemic.

However, if the middle and well-to-do classes still benefit from the savings made possible by certain situations (reduction in their expenditure on mobility, tourism, outings to restaurants or the cinema, for example), the situation is clearly different for the working classes who , they are starting to take the hit and are now digging into their woolen stockings.

At the same time, French growth, which we had been told before and during the presidential election campaign by finding the country in buoyant health, seems to be clearly marking time: the forecasts about it from the French Observatory of Economic Conditions (OFCE) now put it around 2.7% for the year 2022, while the authorities boasted of 4.2% last fall. And poof, no more wonderful numbers!

In addition, and as indicated by a study by the insurer Allianz, things are not going to stop there: the increases currently observed are in reality only a reflection of destocking and prices established during and at the end of the year. basically last year. The war and the new tensions on supply chains that have appeared since the start of the year will only be really reflected in prices in the coming months, which could well result in an even more significant rise in food prices. Fats, flours, oils, the prices of these raw materials must, according to Allianz, increase by another 10 to 25% to reflect the cost increases suffered by producers; in practice, if production costs were to relate 75% (or entirely) to consumer prices, the French should expect inflation of around 8.2% (or 11%).

For a now growing number of French people “to the nearest euro”, such an increase very concretely means sacrifices and then a considerable fall in their standard of living. For some, it’s the difference between eating and ending the month in the red or even accumulating debt.

It is difficult, in this context, to forget what happened at the end of 2018, which saw the development of a spontaneous social movement following an increase in fuel prices, an increase which appears very modest for our days. This movement was at the time largely stifled by police repression and government gestures which gave on this occasion an excellent idea of ​​the presidential fabric or, more precisely, of its glaring absence.

With a president who has shown no intellectual maturity and a government made up for the most part of the same broken arms as in 2018, can we really hope that this galloping inflation and the rapid impoverishment of the French people will not result in stronger social tensions?

This question will remain unanswered for a few more weeks, a few months at most, while Bruno Le Maire, the irreplaceable Minister of the Economy (irreplaceable because no one wants to inherit the mess he created), begins to talk about his ” solutions” for this dire economic situation: he now urges companies that can to raise wages…

Yes, that is also the intellectual power at the service of Bercy: to fight against the increase in prices, he therefore recommends increasing the price of what is generally the most expensive in companies, that is to say say the workforce. It’s going to be fine. Incidentally, we will be grateful to him for at least leaving a semblance of choice to companies, unlike the irremovable leftists like François Ruffin who, for their part, advocate indexing wages to inflation, which is not at all inflation factor either.

Now and regardless of the social movements that will take place (or not) in the coming months, we can already draw up the main economic lines that our clowns on wheels will follow without flinching: faced with the acknowledgment of bitter failure that our fidgety Bruno will not miss above all not to establish after a few quarters of the usual ministerial mishaps, the next step will consist in blocking these prices which are only climbing. As we can already guarantee on the invoice, the shortages, about to set in or already present on certain goods and services, will then become endemic and the problem, already serious, will become insoluble by the grace of the “governmental touch” which distributes the scrofula and transforms the gold into lead.

What do you expect: when you only have the hammer of the distribution of free dough in your hands, all economic problems look like nails on which you will therefore knock conscientiously in the only way you know how to do.

Rejoice, the ration tickets are coming.

source: Hashtable

#inflation #government #aggravate

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