MNI BRIEF: Inflation 'Temporary', But Risks Could Build: BOI

Eurozone upward price pressures will continue in coming months, due to higher energy prices and other temporary factors, but "fundamental determinants such as wage dynamics, do not yet indicate the persistence of high inflation in the medium term", the Bank of Italy said Friday, although noting it "cannot be ruled out in the future".

Upside price pressures from raw materials and intermediate inputs in the U.S. could, though, have an impact on general prices "longer than what was initially expected", said the BOI in its economic bulletin.

Inflation expectations indicate that "the decisive dissipation of deflation fears" and stresses the risks of going above the 2% target remain very low, the BOI notes.