This is not good news for the French wallet.

The Minister of the Economy Bruno Le Maire declared this Wednesday on France 5 that we should "not wait for an improvement on the inflation front before the start of 2023".

But "we don't have a scenario on the table today that predicts double-digit inflation in France," added the minister as consumer prices rose 6.1% over one year in July, according to INSEE.

In the UK, inflation is at 10.1% and is expected to rise above 18% in 2023, according to Citi Bank.

France was “at the peak of inflation”

In France, “in the weeks and months to come, until the end of 2022, we will continue to have very high prices.

Then at the beginning of 2023, at least that's what we expect, in the first quarter of 2023, we should start to see prices and inflation come down.

It will be done gradually, ”said Bruno Le Maire.

In an interview with the daily

Sud-Ouest

published on Sunday, the minister declared that France was “at the peak of inflation”.

Consequently, "it is now that we must help the French the most" before targeting aid "on those who need it most" from 2023, he explained.

Towards the recession of the euro zone

Regarding the risk of recession in the euro zone, Bruno Le Maire estimated on France 5 that “everything will depend on Vladimir Putin's decisions on gas.

If he ever decides to cut the gas for the EU and the euro zone, we assess the impact on growth, for France alone, at half a point of GDP, and probably more for other more dependent economies. Russian gas than us".

"It is on the issue of Russian gas that part of the growth in Europe will be played out in the coming months", according to the minister.

Growth in the euro zone was 0.6% in the second quarter compared to the previous quarter, and 0.5% in France.

But private sector activity contracted in August in the euro zone, and also in France, although less sharply, according to the PMI indices published on Tuesday by S&P Global.

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  • Economy

  • Inflation

  • purchasing power

  • Bruno the Mayor