ECB's Trichet on the eurozone economy

In testimony to the European Parliament given on 20 December Jean-Claude Trichet of the ECB warned that eurozone inflation could rise and hover around 2 pct in both 2007 and 2008.

"While the outlook for energy prices remains uncertain, overall inflation rates are likely to increase again in early 2007 and then hover around 2 pct in the course of that year and 2008, also reflecting the impact of higher indirect taxes," he told the European parliament's economic and monetary affairs committee.

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