ECB's Villeroy: Inflation not only higher but also broader

European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Thursday that inflation in the euro area was impacting items beyond energy prices, as reported by Reuters.

"We're seeing inflation in Europe which is not only higher, which is also broader," Villeroy said. "If it was only about energy prices, some economists would say you can look through, as they say, you can wait until these supply shocks stop."

Market reaction

The shared currency stays on the back foot on Thursday and the EUR/USD pair was last seen losing 0.55% on the day at 1.0386.