Higher U.S. tariffs on European exports are unlikely to have a significant impact on euro area inflation, a leading European Central Bank (ECB) policymaker has said.
Fabio Panetta, a member of the ECB's Governing Council, made the comments in a speech prepared for Italy's annual Assiom-Forex financial conference.
He said that the main risk to inflation remained that of it falling below the ECB's target of 2% over the medium term.
Panetta, who is also the governor of Italy's central bank, said that the main threat to price developments came from energy markets, where prices, particularly for natural gas, are rising amid increased volatility.
However, he said that overall, the available indicators suggest that the predominant risk remains inflation falling below 2% over the medium term.