French finance minister: France to face higher inflation in future
France’s Finance Ministry said the country has nearly vanquished inflation crisis of the last year, but will face stronger price pressure in the years to come – as reported by Bloomberg
“Will we keep the levels of inflation we saw before COVID at the end of this inflation crisis? The answer is no,” commented the Head of the French Finance Ministry.
Bruno Le Maire believes that reshoring and climate change will pressure prices in coming years. The government’s efforts to relocate industry on national soil will have a ‘structurally inflationary effect’.
In the shorter term, according to Le Maire, there will be a painful increase in the cost of credit as the European Central Bank hikes rakes and the government pulling back some fiscal support are both having an effect on prices.
