Eurozone faces risk of entrenched inflation

"Inflation has become more widespread, and potentially more persistent,” said Villeroy. — Bloomberg

BRUSSELS: The eurozone area faces a risk of entrenched inflation that the European Central Bank (ECB) is determined to combat by keeping interest rates high for a sustained period, governing council member Francois Villeroy de Galhau says.

While energy prices have eased sooner than expected and upward pressure on food costs should fade from the third quarter, underlying inflation – including services – has risen steadily in recent months, the Bank of France chief said, according to prepared remarks for a speech in New York.