Trichet: Inflation pressures remain anchored (by William L. Watts)

LONDON (MarketWatch) -- European Central Bank President Jean-Claude Trichet on Thursday said the rise in January inflation to an annual rate of 2.4% from 2.2% in December was broadly anticipated, with price pressures reflecting rising costs for energy and commodities. Trichet, in his monthly news conference in Frankfurt, said price developments warranted close monitoring but said the developments haven't changed the ECB's expectations for inflation to remain in line with price stability. Inflation expectations remain "firmly anchored," he said. Inflation risks remain broadly balanced, but could move to the upside, he said. The euro (EUR_USD) extended a loss versus the dollar to trade at $1.3698, down 0.8% from Wednesday.