Mersch sees threat to prices from oil

ECB Governing Council member and Luxembourg central bank governor Yves Mersch has said high oil prices are still pushing up inflation.

Speaking at the presentation of the Luxembourg central bank's annual report, Mersch said: "The persistent high and rising oil price continues to exert upward pressure on prices and could lead to second round effects."

He said however that the main impact of oil prices on growth will be felt later this year and early next year.

"I believe that figures for this yea