BALLADUR MAINTAINS 1987 FRENCH INFLATION TARGET
Finance Minister Edouard Balladur said he
was maintaining his 2.5 pct inflation target for 1987 after the
announcement earlier today of a 3.4 pct year-on-year rise in
retail prices for February.
    He told a radio interviewer he saw no reason to revise his
target for 1987 after the February monthly result of between
0.1 to O.2 pct, following a 0.9 pct rise in January (three pct
year on year) that forced the government to revise an earlier
target of two pct to a current 2.5 pct.
    He said he was happy with "a good result" for February but
stressed a need for continued "vigilance" against inflation.
    A Finance Ministry statement said the year-on-year
differential between French and lower West German inflation
rates, calculated on the last three months, had narrowed in
February to two to 2.3 pct compared to 2.7 pct in January.
    If calculated on the last 12 months, the differential came
to 3.9 pct, the statement said, adding "The tendency is
therefore one of a lessening of the inflation gap with our main
trading partner."
 REUTER
