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ECB's Moulin says inflation is mainly due to conflict in the Middle East and energy related, adds inflation expectations by corporates and households in the medium term are well anchored
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Moulin attributed inflation mainly to Middle East conflict and energy, noted anchored medium-term expectations, and said yields may affect demand; he urged France to consolidate fiscally and vote on its 2027 budget.
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Says: The rise in yields may affect demand and prompt a more moderate response to an inflation shock. It is urgent for France to show that it is committed to fiscal consolidation and vote on the 2027 budget and reduce the deficit.
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