ECB head says inflation will linger

STRASBOURG, France (AP) - European Central Bank Governor Jean-Claude Trichet has warned that high inflation could linger in the euro-zone for "some time." He cautions governments against wage rises that could further fuel inflation. Trichet says inflation has reached "worrying levels" of around 4 percent and is likely to remain well above the ECB's target level of 2 percent until at least next year. He says he is concerned about wage, price settlements and particularly indexing systems under which wages rise automatically in line with inflation. Trichet was speaking Wednesday to the European Parliament in Strasbourg,... [read full story]