it “should be halved” by the end of 2023, promises François Villeroy de Galhau

Inflation in France is expected to peak during this semester and “to be halved” by the end of 2023, said this Thursday, March 9 on franceinfo the governor of the Banque de France, François Villeroy de Galhau. “The peak of inflation is for this first half”he warned.

“Inflation will drop by June” And “should be halved by the end of the year, but it will still be too much”he assured, reaffirming his ambition to bring inflation back to the 2% target, as desired by the European Central Bank (ECB). “We will do what it takes for that”he insisted. “It’s not just a forecast that we make, it’s a commitment that we make vis-à-vis the French”, continued the Governor of the Banque de France. According to INSEE, inflation rebounded to 6.2% over one year in February, but food products experienced a double-digit surge (14.5%).

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On the energy side, the Governor is optimistic, considering that “prices have started to stabilize” and “lower energy prices will contribute a lot to lower inflation”. Which does not mean that the inflationary crisis is over insofar as “there is always a transmission lag of about three quarters between the evolution of upstream prices and the consumer price”, he says. And the slowdown in food price increases should “start braking by the end of the year”according to François Villeroy de Galhau.