By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Wednesday that the ECB must be ready to act in order to prevent second-round inflation effects.

In an interview with French radio Franceinfo, Villeroy, who heads the Banque de France, said that the surge in inflation was currently concentrated on energy prices.

There were yet no spillovers of this rise in energy inflation to other goods and services, he said, noting that underlying inflation was “extremely well controlled,” but the ECB should be monitoring potential spillovers closely.

“The central bank must be ready to intervene to prevent second-round effects,” he said, noting that the ECB did not yet have enough information on the spread of the energy price shock to other goods.

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