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Oil not second round price effects driving inflation - Weidmann

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BERLIN (Reuters) - Euro zone inflation is above target mainly because of high oil prices but the European Central Bank must remain vigilant that this does not translate into higher inflation expectations among citizens, Bundesbank President Jens Weidmann was quoted as saying. Weidmann, who sits on the ECB's 23-member Governing Council, said there was no sign yet that higher inflationary expectations were taking hold of wage demands and hence price growth in the euro zone economy. The ECB targets inflation of just below two percent and it currently stands at 2.7 percent. ...

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