Letter to the President of the Republic: "How can we reduce inflation?"

This Letter is naturally devoted to inflation, which has once again become the prime concern of French citizens and is at the heart of the central bank’s price stability mission. The rise in prices has accelerated significantly over the past year, reaching 6.5% in France at the end of June, a level that is clearly too high even though it remains, after that of Malta, the lowest in the euro area (which is 8.6% on average). But this rise has also changed in nature: it admittedly retains a strong imported component due to the increase in energy and commodity prices, which is being amplified by the shock of the Russian war in Ukraine. In recent months, inflation has nevertheless spread to a wide a range of goods and services, and has also become domestic: “core” inflation, excluding energy and food, has risen to 3.3% in France (and 3.7% in the euro area), well above our 2% target.