Bercy raises its inflation forecast. While rising prices are hitting households in their wallets and the European Central Bank is trying to counter it with interest rate hikes, it should start to slow down from mid-2023, despite a lofty forecast for 4.9% (compared to the previous 4.2%) for this year, according to Bruno Le Maire who presented the new public finance roadmap for the coming years on Thursday.
As a reminder, inflation had reached 5.2% in 2022 and stood at 5.6% last March for one year.
These perspectives are contained in the stability program (PSTAB) that will be presented to the Council of Ministers next week and that the EU Member States send each year to the European Commission, normally in spring.
“Cooling” of public spending
No more exceptional aid checks and other total support spending, running into the hundreds of billions since Covid: As a pledge of budgetary seriousness, the government raises its desire to initiate a “cooling off” of public sector spending, which should increase more slowly than inflation.
At the same time, the government expects a gradually more dynamic economic activity. After GDP growth slowed to 1% this year, he expects it to recover to 1.6% in 2024 and then 1.8% in 2027.
Source: BFM TV
