FRANKFURT -(Dow Jones)- The decision to raise interest rates should support consumption, by ensuring that an erosion of euro-zone residents' purchasing power is prevented, European Central Bank council member Axel Weber said Thursday.
"High perceived inflation is one of the main effects hampering demand," Weber said, speaking in a video on the Web site of German television station ARD.
The decision to raise interest rates will "no doubt support consumption" by preventing the erosion of purchasing power, Weber added.
In addition, Weber said high temporary inflation isn't only being caused by high oil prices, but also by price increases in the services sector.
Weber said he expects the euro-zone inflation rate to remain around 4% throughout the summer.
Euro-zone inflation hit 4% in June, according to a flash estimate released Monday by Eurostat.
Weber is also president of the Deutsche Bundesbank.
-By Monica Houston-Waesch and Nina Koeppen, Dow Jones Newswires; +49 69 29 725 520; nikki.houston@dowjones.com
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