Duisenberg/Inflation -2: Follows Higher April Price Data
FRANKFURT (Dow Jones)--The European Central Bank is "less than entirely
satisfied" with recent trends in euro zone inflation, ECB President Wim
Duisenberg said Thursday.
"Recently published inflation forecasts, developments in indicators of
inflation expectations and recent trends in wages neither clearly confirm nor
entirely defuse the risk of an entrenchment of upward tendencies in prices,"
Duisenberg said in a speech.
"At this juncture, it is therefore particularly important to remain vigilant
with regard to the further evolution of the key factors determining future
price developments," Duisenberg said.
Duisenberg noted the recent rise in the market price for crude oil "tends to
slow the fall in HICP inflation," but stressed that, despite this, "long-term
expectations of inflation have been remaining below 2%" - the ECB's definition
of price stability.
In his speech, Duisenberg made no mention of specific wage negotiations. But
late Wednesday, Germany's main metal industry union, IG Metall, agreed with
employers on a 4% rise in wages, starting in June.
And there have been signs of growing inflation pressures in the zone: earlier
Thursday Eurostat revised its April estimate for the euro-zone harmonized index
of consumer prices, or HICP, to a year-on-year rise of 2.4% from 2.2%,
following higher-than-expected inflation data from Spain, France, Portugal and
the Netherlands.
(MORE) Dow Jones Newswires 16-05-02 |
