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Prices have been rising steadily since the beginning of the year. To preserve the purchasing power of the French, the left pleads for an indexation of wages on inflation. The right and economists fear an inflationary spiral.
Faced with galloping inflation, the idea of indexing wages to rising prices is gaining ground to boost the purchasing power of the French. “200 euros [de plus] when we go shopping, it’s not bad because now the cart is starting to be not bad. It allows you to have small pleasures like a restaurant or an outing”, assures Christian Buonomo, employee in an incubator who chose to increase his employees between 6 and 12% at the beginning of the year. The boss also considers himself a winner.
In the National Assembly, the deputies on the left are demanding this indexation. “If we don’t, it means that we leave it to the hand of the employer, and possibly to the hand of negotiations that are difficult to bring to a successful conclusion”, argues Pierre Dharréville, PCF deputy. An idea which seduced our Belgian, Maltese and Cypriot neighbours, where an index is calculated according to expenditure on energy, health, real estate and food. A measure that frightens some economists, who fear an impact on prices and an inflationary circle. An economic reason which prompted Luxembourg to suspend such a measure this summer.
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