Liikanen says ECB on alert over inflation risk

European Central Bank Governing Council member Erkki Liikanen said on Thursday 27 October that rising energy costs create significant risks to long-term inflationary expectations in the euro zone.

"Due to rising prices of oil and gasoline, short-term inflationary expectations have been revised upward. Still, long-term inflationary pressures in the euro area are under control," Liikanen, who heads the Finnish central bank, told a seminar. "But significant risks to their upside need to be taken

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