High oil prices will clearly have an effect on global growth and inflation, G10 chairman Jean-Claude Trichet said following a meeting of the central bankers' group. "There is absolutely no doubt that, all things being equal, the fact that the price of oil is high has a mathematical impact on the global economy, namely that it triggers a lower dynamism of growth... and a higher level of headline inflation. That is pure arithmetic," Trichet said at a news conference. But he said global growth is still quite dynamic at present. "At the global level we are still observing quite a dynamic global economy," he said. He said the oil price rise is primarily driven by strong demand rather than supply constraints, and is therefore a reflection of robust economic growth. Hurricane Katrina is expected to hit growth in the third quarter, but this should then be followed by a rebound in activity, Trichet said.