The minister said that France's inflation in the food sector would ease off by September. Food prices are a significant concern for consumers because rising costs make the public feel disadvantaged. But the government minister said that food prices should ease off.

Government minister Olivia Gregoire on Sunday, said: "By the time people return from their vacation time in September, we will see the decrease in the pictures. The public will see directly on the shelves and in terms of food price inflation,"

Olivia Gregoire is a government minister responsible for small and medium-sized enterprises (SMEs). The minister's comments were also echoed by the governor of the Bank of France and the European Central Bank, which said that price inflation would subside soon.

The Bank of France and the European Central Bank are confident and expect that food price inflation will start to ease in the second half of 2023. Based on data released on April 28, the first quarter French economy has experienced an increase of 0.2%.

French Government Minister Expects Food Inflation to Ease Off by September

The concern for France's economy is the strikes against the government pension reform bill. Plus, France's headline inflation level rose to 5.9% in April.

Compared to March, this inflation figure increased by 0.2%, measured by EU CPI. France's government and economists also note that Paris is undergoing normalization of the supply chain situation.

In addition, domestic demand declines, and inflation surprises to the upside. In France, the increase in GDP in the first quarter was caused by dynamic exports than imports.

The foreign trade that occurred contributed to economic growth of 0.6%. Improvements in constraints on production lines have yet to succeed in encouraging food consumption to increase. The total gross fixed capital formation also fell by 0.2% this quarter.

Euro Zone Economy Also Gets Spotlight, and GDP Grows 0.1% in the First Three Months, IMF Still Demands ECB For Hiking Rates

France's economic movement is also based on demands and directions from the ECB and the Bank of France. What's more, if you look at the latest conditions, the Eurozone and the central bank received direct instructions from the IMF to continue hiking rates.

Since last Friday, the IMF has consistently called on the ECB to ward off high inflation by hiking rates. France and several other European countries must face the difficult task of sustaining the recovery while maintaining financial stability.

IMF European Department head, Alfred Kammer, said: "Facing such uncertainty, European central banks must maintain a tight monetary policy to core inflation on a downward path. The IMF also noted that the French central bank must return to its initial target.

Growth in Europe's advanced economies is foreseen to slow to around 0.7% this year. The euro area's annual consumer inflation was confirmed at 13 month-low of 6.9% in March.

He explained that this recommendation is also directed to all European governments for tightening monetary policy. Even more so when you look at the euro zone's two largest economies.

Germany and France, which were relatively stagnant in the first three months of the year, the ECB is predicted to raise rates on May 4, maybe around 50 bassist points, or at least 25 basis points, and the Bank of France will do the same.

ECB President, Christine Lagarde, said: "We appreciate the stronger focus on high debt levels and a medium-term perspective that also aims to set incentives. This is aimed at investment and reforms, and this will help provide for a stricter path on cutting debt,"

In terms of monetary policy perspective, the Bank of France receives direct direction from the ECB. Meanwhile, the ECB received explicit support from the IMF to ease inflation. Especially for the two countries that are experiencing a stagnant situation, France is one of the countries.