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Jean-Claude Trichet: Inflation in the European currency zone will remain well above 2%

de Radu Rizea
Miercuri, 26 martie 2008, 14:19 English | Regional Europe

European Central Bank president, Jean-Claude Trichet, estimated on Wednesday that the inflation in the euro zone will remain well above 2% most of the year, a level higher than previously estimated. As a consequence, Trichet shown his concern on the possible effects, mainly on prices stability. According to Trichet, the economic growth is also a problem, since the perspectives are still uncertain.

The head of ECB admitted that an unusually high incertitude exists, when it comes to the future economic growth, but insisted on fighting the inflation as main target of the Central bank.

Trichet thus revised his statements at the beginning of March, when he estimated the inflation rate as above 2% during the first months of the year and then improving and dropping below this level.

According to a report at the beginning of March, the annual inflation rate was 3.3% in the euro zone, 0.1% more than the previous month and 1.5% more than the same month year over year.

The lowest inflation rates were recorded in Holland (2%), Germany, Portugal and Sweden (2.9%).

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