Inflation in the euro zone “is likely to remain high for quite some time, moderating only gradually during the course of next year.”
So said the head of the European Central Bank .. Jean-Claude Trichet, addressing the European Parliament’s economic and monetary affairs committee.
And Trichet again stressed the ECB’s focus remains inflation: “The very clear principle guiding the setting up of the euro area – that through price stability and credible price stability over time – one was creating the conditions for sustainable growth and sustainable job creation.”
As oil prices come down, inflation is easing a little having risen to 4.1% in July – the fastest pace in 16 years – it slipped to 3.8% in August and the forecast for the whole of this year is 3.6%.
Trichet said the 28% drop in oil prices from the record early in July when they were over $147 a barrel, “will help strengthen real disposable income.”