Trichet warns on 'excessive dynamism' in prices

European Central Bank President Jean-Claude Trichet said on Monday 5 June it was important to take into consideration "excessive dynamism" in asset prices because of the potential inflationary effects.

Trichet, speaking at a monetary policy conference in Washington, said the ECB's goal remained price stability, but there was a connection between rapid asset price growth and potential inflationary pressures.

"There is a connection between the wealth effects and the domestic demand that could tr