PARIS (Reuters) – The peak of inflation in France and Europe should be reached in the first half of 2023, François Villeroy de Galhau, the governor of the Banque de France, said on Monday.
“We should have the peak of inflation in France and Europe by the first half of next year,” he told France 5.
“We will bring inflation back to 2% within two or three years, that is to say the end of 2024, the end of 2025,” he added.
“But let’s be clear, it’s not just a forecast, it’s a commitment to the French and Europeans,” said the Governor of the Banque de France, who sits on the Bank’s Board of Governors. European Central (ECB),
Inflation in France calculated according to European standards HICP reached 7.1% over one year in October, against 10.6% in the euro zone as a whole.
Asked about the French economic situation, François Villeroy de Galhau replied that a slowdown in 2023 was more likely than a recession.
“There is uncertainty about next year, there is certainly a risk of a slowdown in the economy, we expect weakly positive growth for next year,” he said. “We cannot rule out a recession but it would be limited and temporary.”
“We do not believe at all in a hard landing scenario for the French economy: it is a slowdown, and then a recovery in 2024.”
(Written by Marc Angrand, edited by Tangi Salaün)
Copyright © 2022 Thomson Reuters