The Bank of France and the European Central Bank (ECB) “will do what is necessary” to bring inflation in the euro area to around 2%, assured the Governor of the Bank of France on Tuesday.
“I guarantee that we, the European Central Bank, the Bank of France, will do what is necessary for inflation to return to around 2% over time,” François Villeroy de Galhau said on LCI.
The rise in consumer prices has reached 5% over one year in December in the euro zone, its highest level for 25 years, therefore since the launch of the single currency. In France, this increase only reached 2.8% over one year in December, as in November, which is the highest rate since 2008.
“Fairly close to the top of the bump”
Most economists are of the opinion that inflation, driven since last year by a very sharp rise in energy prices and shortages of certain raw materials, will slow down during 2022, but some believe that it will remain at higher levels for the long term than during the 2010s, in particular because of the cost of the ecological transition.
“In a year, we think that inflation in France will have fallen below 2%”, added Mr. Villeroy de Galhau, who thinks “that we are quite close to the top of the bump”.
“We understand that rising prices are a concern for many, and we take this concern very seriously,” ECB President Christine Lagarde said on Tuesday at the ceremony for the new president of the central bank to take office. German Bundesbank, Joachim Nagel. “But people can be sure that our commitment to price stability is unwavering, which is crucial for a solid anchoring of inflation expectations and confidence in the currency, ”added Lagarde.
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At the end of October, the popular German daily Bild had dubbed Christine Lagarde the nickname “Madame Inflation” which “impoverishes savings and pensioners”.
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