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U.S. weakness remains threat to global economy: Draghi
ROME (Reuters) - The global economy is threatened by continuing weaknesses in the U.S. economy and rising energy and raw materials prices, European Central Bank Governing Council member Mario Draghi said on Saturday.
Draghi told a Bank of Italy meeting that ECB policy remained "firmly focused on the objective of price stability."
"The greatest threat to the world economy now comes from the build-up of inflationary pressures and the possible worsening of the American slowdown," Draghi, who is also Bank of Italy governor, said, according to a text released in advance.
Noting that euro zone inflation rose to an average 3.3 percent in the first quarter, Draghi said: "The latest figures point to a further acceleration."
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Data released on Friday showed euro zone inflation surged to 3.6 percent in May.
"Nevertheless, the rise in domestic prices has remained modest and no wage-price spiral has developed to date," he said.
"Today the European Central Bank is keeping monetary policy firmly focused on the objective or price stability over the medium term," he added.
(Reporting by Robin Pomeroy; Editing by Louise Heavens)
