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FRANKFURT (Reuters) - Euro zone inflation is on its way back to 2%, but the process is bound to be bumpy and geopolitical tensions pose an upside risk to price growth, European Central Bank Vice President Luis de Guindos said on Monday.
"The geopolitical situation, especially in the Middle East, poses a particular upside risk to inflation," de Guindos said in a speech. "Should tensions in the region escalate further, major trading disruptions and impediments to oil supplies could push up energy prices and freight costs in the near term, disrupting global trade. I
(Reporting by Balazs Koranyi; Editing by Leslie Adler)
