Despite its decline, inflation will remain “a little higher” than before, warns Bruno Le Maire
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“The inflationary crisis, I confirm, is behind us,” declared this Thursday the Minister of the Economy, Bruno Le Maire on CNews/Europe 1, warning that the level of inflation will remain “a little higher” than before the crisis. It will remain around 2%, notably due to the cost of the energy transition, he detailed.
“This remains very hard for many of our compatriots,” added the minister. “We will be below 3% inflation in 2024,” he continued, also recognizing that prices would not return to their pre-crisis level.
“2% instead of being around 1%”
“Because we are relocating activities, because the decarbonization of our economy is expensive, it is likely that the level of structural inflation will be a little higher than what it was before the Covid crisis,” explained the government’s number two. “This means that we have experienced inflation levels around 1%, or even almost zero, and that we will have inflation levels which will be more consistently around 2% instead of being around 1%,” he explained.
In November, inflation continued its decline in France, falling to 3.5% over one year compared to 4% in October, according to the National Institute of Statistics. In its latest forecasts published in mid-December, INSEE anticipates inflation at 2.6% over one year next June, compared to 3.7% at the end of 2023 and around 6% at the start of the year. After peaking at almost 16% in the spring, food price inflation should clearly stall at 1.9%.
The Banque de France predicted that inflation would reach 5.7% on an annual average in 2023 and fall to 2.5% in 2024, measured here according to the harmonized consumer price index (HICP) allowing the comparison between European countries.
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