Insufficient inflation, 200 euro bonus and ECB policy: do we need a sliding scale?

Inflation continues to rise and rising energy prices also push food prices up. In this situation, Emiliano Brancaccio, professor of economic policy at the University of Sannio (Benevento), explains in an interview with that “the restrictive monetary policy of the ECB is insufficient to fight the increases, as are the interventions commercials such as the 200 euro bonus “. In particular, looking at the shopping cart, prices continue to run relentlessly: those of food goods, for home and personal care, grew by 9.7% in August, an increase that had not been recorded since June 1984. On the other hand, high-frequency purchasing products slowed down: from + 8.7% to + 7.8%. As for electricity, free market prices grew by 20.5% from July and by 135.9% on annual basis. Those of gas rose by 22.8% compared to the previous month and by 62.5% compared to August 2021. This trend is only partially offset by the slowdown in the prices of diesel for means of transport (-9.2% the monthly figure ), petrol (-10.4% since July) and diesel fuel (-6.0%) Meanwhile, the European Central Bank has raised interest rates, with the aim of extinguishing the inflationary blaze. But no definitive solutions have yet been put in place.