Fear of inflation stirs financial markets

DECRYPTION – After a sharp rebound in prices in the United States under the effect of the Biden stimulus, Europe fears contagion that would threaten financial stability.

It’s a time the under-60s can’t remember. A world where price increases were galloping in double digits, wages were trying to run behind, purchasing power was eroding, savings evaporated and credit rates soared. The specter of inflation in the 1970s is remembered since the reopening of economies is accompanied by strong price rebounds. A simple technical shake-up or a change of economic era? The question divides seasoned economists and big money-makers around the world.

The fear comes from the United States, where the publication last week of inflation at 4.2% in April – a figure not seen since 2008 – has panicked financial markets and raised government bond rates. Redacted from the more volatile energy or food sectors, the increase reached 0.9% over one month (3% over one year), the highest for forty years.

When vaccinated Americans get out of confinement, their bank accounts swollen

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