Inflation Reduction – Another ‘Feather in the Cap’ of Competition

The relationship between competition and inflation can stir up debate. To some, a lack of competition allows corporate greed to exacerbate inflationary pressure, while to others competition seems irrelevant to any inflation-based discussion. This short article argues that the truth lies somewhere in between, even if the chief policy responses to inflation should lie firmly with monetary and fiscal policy rather than competition authorities. The link between competition and inflation is complex,