By Alan Katz
(Bloomberg) —
Bank of France Governor Francois Villeroy de Galhau said he expects inflation in the euro area to peak in coming months and for price increases to fall below 2% by the end of 2022.
Villeory, who is also a member of the European Central Bank’s governing council, said the jump in inflation was a temporary bump linked to the rise in energy prices and a few other areas, and that business leaders were already telling him of declines prices in some commodities.
“A bump, even if it’s high, doesn’t make for a long term trend,” Villeroy said in an interview on France Inter radio. “I don’t think it’s start of a spiral, even if we need to remain very vigilant.”
Villeroy also dismissed a question about whether the ECB should consider raising rates, saying that the first error one can make in monetary policy would be to overreact to a temporary variation in prices.
©2021 Bloomberg L.P.
By Alan Katz(Bloomberg) —Bank of France Governor Francois Villeroy de Galhau said he expects inflation in the euro area to peak in coming months and for price increases to fall below 2% by the end of 2022.Villeory, who is also a member of the European Central Bank’s governing council, said the jump in inflation was a temporary bump linked to the rise in energy prices and a few other areas, and that business leaders were already telling him of declines prices in some commodities.“A bump, even if it’s high, doesn’t make for a long term trend,” Villeroy said in an interview on France Inter radio. “I don’t think it’s start of a spiral, even if we need to remain very vigilant.”Villeroy also dismissed a question about whether the ECB should consider raising rates, saying that the first error one can make in monetary policy would be to overreact to a temporary variation in prices. ©2021 Bloomberg L.P.Bloomberg.com