The president of the Bank of France, François Villeroy de Galhau, member of the Governing Council of the European Central Bank (ECB), declared on Saturday that the rise in oil prices Petroleum and fuels does not alter the ECB’s objective of returning inflation to 2% by 2025.
“Gasoline consumption at the pump represents approximately 5% of our total consumption, so it is a small part of the inflation total, even if it is the most visible,” he declared to France Inter radio.
Brent crude prices are trading near $100 a barrel as investors focus on the prospect of a supply shortfall in the fourth quarter after top producers Saudi Arabia and Russia extended supply cuts.
Villeroy pointed out that the current rise in energy prices was not as widespread as in 2022 after the start of the war in ukrainewhen it included other types of energy and raw materials such as grains and metals, making rising oil prices less of a threat to efforts to slow down the economy. inflation underlying.
“I will say it again this morning, our forecast and our commitment is to bring inflation towards 2% in 2025,” he added.
Villeroy also reiterated that the rates of the European Central Bank They are at a good level and he asked for patience.
“We have passed the peak of inflation, there even seems to be a change in trend in core inflation (…) now we have to be persistent, keep rates at this level as long as necessary,” he said. “Patience is more important than raising rates further.” (Reporting by Sybille de La Hamaide and Gilles Guillaume; Edited in Spanish by Ricardo Figueroa).
Source: Gestion
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