21 November 2003, 18:13  ECB's Trichet says on track in inflation fight

FRANKFURT, Nov 21 - European Central Bank President Jean-Claude Trichet on Friday cited high oil and food prices as reasons for larger than expected price gains, but said the central bank was well on track in fighting inflation. Tax measures in some European Union countries had also had an impact on the consumer price index. "All these reasons explain why we have observed this so-called stickiness. We have said why in the longer term why we are in line with our definition of price stability," Trichet said at a banking conference here. Annual consumer price inflation eased to 2.0 percent in October, from 2.2 percent a month earlier, moving closer to the ECB's two percent tolerance ceiling. The central bank has said price rises will fall below two percent next year.||www..com

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