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Competition

Competition and Inflation

 

 

Read the background note

 

Lisez la note de référence

2023 OECD COMPETITION OPEN DAY

On 23 February 2023, competition and inflation will be again addressed at the fifth edition of the OECD Competition Open Day in Paris at an event open to all. 

Register now and learn more about this event 

The relationship between prices and competition is well established, with low levels of competition contributing to higher price levels. However, the link between competition and price increases (inflation) appears less clear-cut. Further, whether or not competition is an important driver of inflationary pressures, an inflationary environment may have meaningful implications for competition policy.

 

On 30 November 2022, the OECD Competition Committee held a roundtable to discuss competition and inflation. The topic will be again be explored next February in Paris during the 2023 OECD Competition Open Day, an event open to the public. Click here for registration and more information.

 

KEY TAKEAWAYS FROM THE NOVEMBER 2022 ROUNDTABLE

  • Although there were mixed views on the extent to which competition played an important role in reducing inflation, there was an overall agreement on the potential for anti-competitive conduct to worsen inflation and for competitive markets to act to depress inflation over the longer term.
  • Participants shared the various measures taken by their jurisdictions in response to the current increase in inflation. It was clear that understanding the causes behind price increases and whether these are caused by competition issues was important.
  • It is important to advocate competition: increased competition can lower prices during such times.
  • Some advocated strongly for the need to invest in competition now in order to benefit from it in the future, for example through its potential to depress inflation over time. 
 

Read the Background Note   l   Lisez la note de référence

See the full list of best practice roundtables on competition

Invited speakers

Hal J. Singer Bio  
Managing Director, Econ One Research

Jan De Loecker Bio 
Professor of Economics, KU Leuven

Natalie Chen Bio  
Professor of Economics, University of Warwick

Documents

OECD Background note l Note de référence de l'OCDE

Note by Jacob Linger, Hal Singer, Ted Tatos

Note by Natalie Chen

 

Contributions from delegations

Argentina

Austria

BIAC

Brazil

Consumers International

EU

France EN I FR

Germany

Hungary

Indonesia

Kazakhstan

Lithuania

Portugal

Romania

South Africa

Spain

Turkey

Chinese Taipei

Summaries of contributions

 
Presentations

Hal Singer

Natalie Chen

 

 


Jan De Loecker

 

Related material

Competition Issues in the Food Chain Industry (2013)

Competition and Commodity Price Volatility (2012)

See also

OECD best practice roundtables on competition

More OECD work on competition

 

Related Documents