ECB's Trichet points to inflation risk

European Central Bank (ECB) president Jean-Claude Trichet said the recent surge in commodity prices represents a global inflation…

European Central Bank (ECB) president Jean-Claude Trichet said the recent surge in commodity prices represents a global inflation risk.

"The current surge in commodity prices, including food more recently, which is resulting in particular from supply being unable to match higher demand from emerging markets, reminds us that globalisation can also lead to risks to world inflation," he said in a speech.

Mr Trichet also said that the ECB is closely monitoring the correction in financial markets and will take account of its impact on inflation.