According to INSEE, price increases in France will plateau at 6% in February. A high level, very high, but France is doing better than other European countries, said François Villeroy de Galhau, Governor of the Banque de France. On France 2he wants to be moderately optimistic: “ We should see the peak of this inflation in the semester “, he thus indicated, advancing the month of June for this famous peak. And maybe even before. After that ? Inflation should finally come down: Inflation will start to decrease in France from mid-year ».
Inflation: prices will remain high
However, will this long-awaited drop push prices down? Nothing is less certain, at least in the short term. The costs ” will remain relatively high for the next few months », Details François Villeroy de Galhau, « and then they will have to decrease gradually, there also from the summer “. In this regard, there is no miracle to be expected: the annual negotiations between distributors and manufacturers will lead to significant price increases that will remain in place for a while. A “ tsunami d’inflation “, even warned Michel-Edouard Leclerc…
Back to normal by the end of 2024
The Banque de France plans to bring inflation back to around 2% by the end of next year or the beginning of 2025. This level corresponds to “ price stability “. As far as economic activity in France is concerned, the governor does not see a recession for this year, “ except obviously a new major event “. Growth is expected to average 0.3%, he predicted, while adding that there was uncertainty.