ECB's Trichet on the eurozone economy

In a speech to the European Parliament given on 4 July Jean-Claude Trichet of the ECB said the bank projects inflation to be between 1.8 per cent and 2.2 per cent this year and between 0.9 per cent and 2.1 per cent in 2006, adding that "upside risks to these projections remain.

"The main risks were oil price developments, indirect taxes and administered prices," he said.

Trichet also painted a bleak picture of the eurozone economy.

"Most recent indicators for economic activity remain, on balance

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