France’s Minister of the Economy, Bruno Le Maire (AFP)
Bruno Le Maire, the economy minister, claims that he does not anticipate an improvement in the inflation situation until the start of 2023.
We don’t currently have a scenario on the table that projects double-digit inflation in France, where consumer prices increased by 6.5%, the French finance minister said. July’s annual change was 1%, according to the National Statistics Office.
The United Kingdom’s inflation rate has reached 10.1%, and Citi Bank projects that it will reach 18% by 2023.
Le Maire, the French finance minister, predicted that until the end of 2022, prices will remain extremely high. Then, we are anticipated to see a decline in prices and inflation at the beginning of 2023, or at the at least, in the first quarter of 2023. It will happen over time.
Le Maire said that France’s inflation had hit its highest point in an interview with the Sud-Ouest newspaper that was published on Sunday.
He then made reference to those who would need it the most starting in 2023, saying that as a result, this is the period when we must help the French more than ever.
Le Maire told France 5 that Vladimir Putin’s decisions on gas will determine whether or not there is a risk of a recession in the eurozone.
We are evaluating the growth impact of Putin cutting off gas to the European Union and the eurozone, and it will be equivalent to half a point of GDP for France alone, and possibly more for other countries who rely on Russian gas more than we do, he added.
The issue of Russian gas will affect Europe’s development in the next months, he added.
The eurozone expanded by 0.6% in the second quarter of this year compared to the first quarter, while France expanded by 0.5%.
However, purchasing managers indices released on Tuesday by Standard & Poors Global show that private sector activity in the eurozone and France shrank in August, albeit less sharply.
We do not anticipate an improvement on the “inflation front” before the start of 2023, according to the French Minister of the Economy.
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