Economics
ECB’s Villeroy Says Inflation Is Too Strong and Too Broad
- Price pressures require policy normalization, Villeroy says
- French central bank chief speaks ahead key June 9 meeting
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The European Central Bank must pare back stimulus as inflation is too strong and too broad, Governing Council member Francois Villeroy de Galhau said.
In a speech at an economics conference in Paris, the Bank of France chief said that even a measure of core inflation -- which strips out the impact of surging prices of food and energy -- is above the ECB’s 2% target after reaching 3.8% in May. He said the central bank’s meeting next week will be “decisive” in setting out a response.