FXstreet.com (Barcelona) - Inflation will be growing at a very fast pace over a more protracted period in the European Monetary Union , and upside risks for price stability will remain over the medium Term, however, the Euro Zone economic fundamentals remain high, according to the ECB's president, Jean Claude Trichet's first press release after the latest monetary policy meeting.

Consumer prices are suffering more persistent upward pressures at the moment, the HICP will remain above 3.0% for some time, said Trichet. The ECB estimates inflation at consumer level to range between 3.2% and 3.6% in 2008, to range from 1.8 to 3.0% in 2009.

The ECB assures Trichet, will remain in a state of heightened alertness, to monitor developments and act in a firm and timely manner on second round effects. In that sense, Trichet affirmed the need to monitor wage deals with particular atention.

At the same time Trichet has revised up the forecasts of economic growth for the current year, while the GDP growth for the next year has been lowered down. According to the ECB's president Euro Area's GDP will grow between 1.5 and 2.1%, whereas the growth forecasts for 2009 range from 1 to 2%.