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

© Reuters. FILE PHOTO: Ignazio Visco, governor of Bank of Italy, speaks during an event to launch the private finance agenda for the 2020 United Nations Climate Change Conference (COP26) at Guildhall in London, Britain, February 27, 2020. Tolga Akmen/Pool via REUTER

MILAN (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.