'US weakness remains threat to global economy'

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ROME, June 1 (Reuters): The global economy is threatened by continuing weaknesses in the US economy and rising energy and raw materials prices, European Central Bank (ECB) Governing Council member Mario Draghi said Saturday.

Draghi told a Bank of Italy meeting that ECB policy remained "firmly focused on the objective of price stability."

"The greatest threat to the world economy now comes from the build-up of inflationary pressures and the possible worsening of the American slowdown," Draghi, who is also Bank of Italy governor, said, according to a text released in advance.

Noting that Eurozone inflation rose to an average 3.3 per cent in the first quarter, Draghi said: "The latest figures point to a further acceleration."

Data released Friday showed Eurozone inflation surged to 3.6 per cent in May.

"Nevertheless, the rise in domestic prices has remained modest and no wage-price spiral has developed to date," he said.