The global economic recovery is on track but monetary authorities would have to remain vigilant against inflationary dangers, the G10 central bank governors said on Monday. Jean-Claude Trichet, chairman for the G10 central bank heads and ECB president, downplayed the overall impact of historically high oil prices on the economy, saying the high price was a reflection of strong demand, but added that current prices were "much higher than normally appropriate". "The global recovery is confirmed after some slowing down in the second quarter," Trichet said at a regular meeting of central bankers from the G10 industrialised nations and major emerging markets. "Most indicators suggest some strengthening in the third quarter," he added. "We are confident that the inflationary expectations at a global level are on track, namely that we maintain price stability," Trichet said. "Vigilance remains of the essence."|||