Euro zone inflation will stay above 2 per cent for some time, ECB Executive Board member Jose Manuel Gonzalez Paramo said in an article published today.
The euro zone should see sustained GDP growth over the next few quarters, Gonzalez Paramo also said in the Economic Informationjournal published by Spain's savings bank foundation.
Growth in credit and money supply within the 12-member zone continued to be very dynamic, he added.
"Therefore it is necessary to continue closely monitoring monetary evolution, all the more so since we find ourselves in the context of strengthening economic activity and strongly dynamic asset prices, especially the real-estate market."
He added that another medium-term upside risk for inflation was a possible knock-on effect from higher energy prices.