The European Central Bank's Executive Board Member Gertrude Tumpel-Gugerell said that the bank will continue to observe inflation to maintain price stability over the medium-term.

Inflation rose during the final month of 2010, to 2.2 percent, exceeding the bank's desired rate of 2.0 percent, but yesterday's ECB bulletin report showed that the bank will not raise interest rates despite that inflation warrants very close monitoring.