MNI BRIEF: Inflation At Target; Mid-Term Tariffs Hit-Escriva

Eurozone inflation will be on target at around 2% for the next few years but in the medium U.S. tariffs on European imports could affect growth, Bank of Spain Governor Jose Luis Escriva said in an interview with Spanish radio on Friday.

The declaration by European Central Bank President Christine Lagarde noting that the disinflationary process is over refers to the fact that the inflation target has been reached and that prices will stay stable around 2% in the medium term, Escriva said, adding that the current real interest rate is at 0%.(See MNI ECB WATCH: Lagarde Declares Disinflationary Process Over)

The fiscal situation in France is also a concern for Escriva, who noted that the country has not complied with European fiscal rules in recent years.