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Villeroy de Galhau confident about the “last mile” of the fight against inflation

The Governor of the Bank of France François Villeroy de Galhau was confident on Friday about the “last mile” of the fight against inflation, which will consist of bringing the price rise sustainably around the European objective of 2%.

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Villeroy de Galhau confident about the “last mile” of the fight against inflation

The Governor of the Bank of France François Villeroy de Galhau was confident on Friday about the “last mile” of the fight against inflation, which will consist of bringing the price rise sustainably around the European objective of 2%. “There is a theory of the last mile, which consists of saying that the last part of the path towards the 2% objective would be more difficult,” declared the governor in the program Ecorama, broadcast by the online bank Boursorama. “I do not believe in this specificity of the last mile,” he immediately decided, the day after an update of the inflation forecasts of the European Central Bank, which now expects prices to rise. of 2.7% in 2024, 2.1% in 2025 and 1.9% in 2026 in the euro zone.

“Today we see a general movement of disinflation (slowing down of inflation, Editor's note), including underlying inflation, that is to say excluding energy and food,” rejoiced François Villeroy. from Galhau. “The price of services is also falling relatively quickly,” he added. While he does not rule out a “technical” rebound in inflation in the coming months, “of the order of a few tenths of a point,” the head of the Banque de France assures him: this jump will not be enough to “break this underlying trend towards disinflation”. “We should not declare victory too early, but in this fight against inflation, we are scoring points,” he said.

Also read Jean-Pierre Robin: “France is the best student in the face of inflation in the euro zone in 2022 and dunce in 2023”

On Thursday, ECB President Christine Lagarde called for “not letting our guard down” despite the slowdown in price increases in the euro zone. While European leaders have been meeting at a summit in Brussels since Thursday, François Villeroy de Galhau pleaded for new European budgetary rules that are “pragmatic, realistic and if possible quite simple”. On this last point, "it seems that we are not necessarily taking the path", he regretted while France and Germany are negotiating step by step on the budgetary framework which will be imposed on Member States from 2024, after being suspended for three years in a row. A videoconference meeting of European Union finance ministers is planned for Tuesday to try to reach an agreement.

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