2023-06-26 11:17:46
The situation is improving. France is “winning the fight” against rising prices, assured the Minister of the Economy on Radio J this Monday morning. “Inflation is starting to decline after months of fighting against price increases”, which exceeded 6% over one year at the start of the year, underlined Bruno Le Maire. “We are winning this fight (…) long and difficult”, he rejoiced.
However, all is not yet won. “Will we come out of this crisis at inflation levels like those we experienced before the Covid crisis? The answer is no,” warned the minister. “I do not think that we will return to these very low rates, around 0%, which we have known in the past years”, hammered the tenant of Bercy.
The effect of relocation
This for “two very structural reasons”, he explained: “The first is that we have decided to put the value chains back in France and that it is more expensive to produce electric batteries in France than to import them from China, so that has a structurally inflationary effect,” he explained. “The second reason is the climate transition: it has a cost and will weigh on prices in the years to come,” added Bruno Le Maire.
The consumer price index rose in May by 5.1% over one year, according to figures from INSEE, which is due to publish a first estimate of inflation for the month of June at the end of the week.
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