Praet sees no inflation problem

BERLIN: Higher oil and energy prices are pushing inflation higher for now, but there is no general problem with price pressure and inflation will ease again in 2013, European Central Bank Executive Board member Peter Praet told a German newspaper.

"Long-term inflation expectations are stable at under 2 percent, in line with our vision of price stability but we are following developments very carefully," Praet told the Frankfurter Allgemeine Sonntagszeitung.

Asked about a spike in property prices inGermany, Praet said: "We can look back on a period of very low and in some cases negative price developments inGermany. We will monitor the situation in certain parts ofGermanyvery closely."