Energy, not excess demand drives euro zone inflation: ECB’s Visco

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MILAN, June 16 (Reuters) – Surging energy prices and not excess demand is driving euro zone inflation to record highs, European Central Bank policymaker Ignazio Visco said on Thursday, highlighting the contrast between the fortunes of Europe and the United States.

The ECB is planning to raise interest rates in July and September to curb price growth but the aim of the move is to prevent high price growth from getting entrenched and not to curtail demand, Visco, Italy’s central bank governor said at a conference.

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