ECB's Trichet warns of "explosion" in inflation

A pile of one pound coins is seen, in central London June 17, 2008. REUTERS/Toby Melville

A pile of one pound coins is seen, in central London June 17, 2008.

Credit: Reuters/Toby Melville

BERLIN | Wed Jul 2, 2008 1:49pm BST

BERLIN (Reuters) - There is a risk inflation will "explode" if the European Central Bank does not act decisively to counter it, ECB President Jean-Claude Trichet was quoted as saying in an interview with a German paper.

"If we are not resolute, there is a risk that inflation will explode. If we act decisively, then we can master the situation," Trichet said in the German text of comments published by weekly Die Zeit on Wednesday.

Euro zone inflation hit a record 4 percent in June, and the ECB is expected to raise its main interest rate when it meets on Thursday. It was not immediately clear when Trichet made his comments to die Zeit.

(Writing by Dave Graham)
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