Why all wages should not be indexed to inflation

by time news
For deputy François Ruffin (Nupes), the indexation of wages to inflation is “a powerful necessity in the country”. ALAIN JOCARD / AFP

ANALYSE – While prices are soaring, the CGT and left-wing deputies are demanding to link the evolution of remuneration to that of inflation.

87% of French people are in favor of indexing wages to inflation, according to an Ifop poll, dating from last week. We understand them: wages are progressing today in France less than prices, about 3% growth for wages against 5% for inflation. Hence a feeling of very strong deterioration in the standard of living and the ardent desire of employees to be increased. A wish to which companies must respond with a certain parsimony. If on an individual basis, an increase is always good news; collectively, they can be deleterious.

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