Governments around the world are struggling to devise a sensible approach to managing inflation and disruptions to production and the supply of basic goods. The UK Treasury, for example, was last week reported to have issued a proposal to encourage supermarkets to cap prices on essentials (such as bread and milk) in exchange for loosened packaging and environmental regulations. At first glance, this appears pragmatic and compassionate. But look beneath the surface and you will find an unwillingness to confront the structural drivers of rising costs.

Carolina Alves thinks too many governments are focusing on the symptoms, rather than the causes, of high living costs.

Governments around the world are struggling to devise a sensible approach to managing inflation and disruptions to production and the supply of basic goods. The UK Treasury, for…