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Euro zone inflation rise still not sustainable: ECB's Praet

FRANKFURT (Reuters) - The recent surge in euro zone inflation is temporary and the European Central Bank will continue to look through such blips, maintaining stimulus until the rise is deemed sustainable, European Central Bank chief economist Peter Praet said.

"The ups and downs of monthly data are not relevant if they are temporary and have no implications for the medium term outlook for price stability," Praet, who sits on the ECB's executive board, said in Berlin.

"The current environment still falls short of a sustained adjustment in the path of inflation to levels closer to 2 percent over the medium term," Praet said. "It will take time for inflation to stabilize around levels consistent with our price stability objective."

(Reporting by Balazs Koranyi; Editing by Andrew Heavens)

 

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