The European Central Bank's chief economist Otmar Issing has said he is very concerned about rising inflation anticipation in the euro zone.
Anticipation of inflation is a process whereby businesses and individuals take decisions in the expectation that inflation will rise.
Speaking in Frankfurt, Issing also expressed concern over the current level of inflation in the euro zone, noting that annual increases in consumer prices remain 'stubbornly above 2%, which is a problem'.
Euro zone inflation came to 2.4% in June after 2.5% in May, with the ECB predicting that it will stay above 2%
until early next year.
The ECB for the moment has shown no sign that it is about to follow the lead of the US Federal Reserve and tighten monetary policy. The bank on Thursday left its benchmark interest rate at 2% but appeared to harden its position in vowing to remain 'vigilant' in the face of possible inflationary pressure.
