PARIS (Reuters) – The European Central Bank will do what it takes to bring inflation back to its 2% target over time, Banque de France Governor Franois Villeroy de Galhau told the National Assembly on Tuesday.
Inflation in the euro zone accelerated in January to reach a record level, shows the first estimate published last week by Eurostat, an estimate that could weaken the position of the ECB on the temporary nature of the rise in prices.
Franois Villeroy de Galhau, however, reaffirmed before the Assembly’s Finance Committee that inflation would decline over the coming months.
“I guarantee that we, the European Central Bank and Banque de France, will do what is necessary to bring inflation back to around 2% in the euro zone and a fortiori in France. We have the mandate to do so, we we have the ability, we have the will,” he said.
(Report Leigh Thomas, French version Nicolas Delame, told by Sophie Louet)