HIGH PROTRACTED inflation within Portugal and the Eurozone countries is set to continue into 2008, according to Jean-Claude Trichet, President of the European Central Bank.

The ECB has announced that it has no plans for the time being to lower interest rates until it has had a chance to evaluate the pressure on the international credit markets.

This is because “risks to the stability of prices for the medium term are clearly high”, it stated at the end of last month, with the inflation level predicted to hover around 2.5 per cent in 2008, a rise of 0.4 percentage points on 2007.

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