FRANKFURT (MNI) – The European Central Bank reiterated its
expectation that inflation will hover around current levels over the
next few months before moderating in 2011, and it reaffirmed that
inflation expectations remained firmly anchored in line with the central
bank’s definition of price stability.
In its Monthly Bulletin published on Thursday, the ECB
awknowledged, however, that risks to price developments were “slightly
tilted to the upside,” relating to energy and non-fuel commodity price
developments.
“Furthermore, increases in indirect taxation and administered
prices may be greater than currently expected, owing to the need for
fiscal consolidation in the coming years,” the ECB said.
Domestic price and cost development risks, however, are contained,
the central bank said.
— Frankfurt bureau; +49-69-720 142; email: frankfurt@marketnews.com
[TOPICS: MT$$$$,M$X$$$,M$G$$$,M$$EC$,M$$CR$,MGX$$$]
