French inflation seen returning to 2% by 2027-2028 as recession is avoided

4 articles · Updated · Reuters · May 4

Bank of France Governor Francois Villeroy de Galhau said in Paris inflation could average just under 2% to above 3% in 2026, while growth this year is seen at 0.3%-0.9%.
He said the near-term inflation surge would be driven by higher energy prices after what he called an unprecedented shock, but price growth should later return to the central bank's target.
The forecast suggests France's economy will keep expanding despite renewed price pressures, avoiding a contraction even as households and businesses face another energy-driven inflation spike.

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