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Image header Agence Europe
Europe Daily Bulletin No. 9574
Contents Publication in full By article 21 / 33
GENERAL NEWS / (eu) eu/economy

Jean-Claude Trichet is resolved to combat price surge

Brussels, 07/01/2008 (Agence Europe) - Global economic growth remains strong, but inflationary pressure continues, reiterated Jean-Claude Trichet speaking on Monday 7 January after the ten main central banks worldwide met in Basel (G10), AFP reports. “At world level, we have confirmation that growth is continuing at a robust rate, despite a slight slowdown”, said the president of the European Central Bank (ECB) and G10 spokesman. If the emergent countries are not affected by the sub-prime mortgage crisis, its consequences for the real economy of industrialised countries remains uncertain, Trichet said. Inflationary risks remain significant at world level and the surge in prices for raw materials, oil and food products are also a risk, he added. The ECB Governing Council is to meet on Thursday 10 January to take a stance on interest rates in the eurozone, and Mr Trichet speaks of his resolve to counter any inflationary spiral. “There cannot be complacency when it comes to inflation and market correction”, he explained, stressing the risk of second round effect (impact that the price rises can have on the economy via salary increases). Although eurozone inflation has remained at a high level in December (at 3.1% on average, unchanged compared to the month before), the ECB's margin of manoeuvre has hardly changed since its last meeting (EUROPE 9559), so that most analysts are reckoning on the monetary situation remaining unchanged on Thursday. (A.B.)

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