Trichet is right to be nervous about inflation

According to this article by the Financial Times, published Monday 12 June, Jean-Claude Trichet and his ECB colleagues are nervous about inflation and rightly so.

"Their refusal to commit to future interest rate increases constitutes a shift in the ECB's stance - but only towards more flexibility, not towards a looser monetary policy," Wolfgang Munchau writes in the article.

With most hard economic data pointing in the same direction, and the eurozone economy growing above trend, the European C