Bank of France’s Villeroy sees inflation returning to 2% in 2027, 2028

PARIS, May 4 (Reuters) – Bank of France Governor Francois Villeroy de Galhau ​said on Monday ‌he expected the inflation rate to return to 2% in 2027-2028 after a ‌spike ​this year triggered ⁠by higher energy ⁠prices caused by “an unprecendent shock”.

“We will first have a surge in inflation ​in 2026 this year, so inflation according ⁠to the ⁠scenarios would be ​between a little less than ​2% on average annually ‌or more than 3%,” he said in an interview on BFM TV ⁠station. “But inflation would return to the target of 2%.”

He added ⁠the ‌bank expected France ⁠to avoid recession ​this ‌year, with economic growth ​of ⁠between 0.3% and 0.9% “in the most optimistic scenario”.

(Reporting by Sudip Kar-Gupta and Inti Landauro; Editing by Alex ​Richardson)