Bank of France governor reaffirms ECB’s commitment to 2% inflation target amid rising energy costs and geopolitical tensions.
The European Central Bank will take necessary steps to return inflation to its 2% target, Bank of France Governor Francois Villeroy de Galhau said. His remarks follow a rise in eurozone inflation to 3% in April, up from 1.9% before Middle East conflict disrupted energy supplies.
Eurozone inflation had briefly dipped below the ECB’s target before spiking due to surging oil prices. The closure of the Strait of Hormuz has heightened concerns over an energy crisis, with fuel prices climbing and governments intervening to stabilize markets.
Villeroy de Galhau, a member of the ECB’s Governing Council, emphasized the bank’s independence in addressing inflation risks. Markets remain wary of persistent price pressures as energy shocks threaten economic stability.