Euro zone inflation is set to go higher and price growth is likely to be more persistent than earlier thought, European Central Bank board member Isabel Schnabel said on Thursday, defending the ECB's plans to raise interest rates further, Reuters reported. The ECB has lifted rates by a combined 125 basis points over its last two meetings to combat inflation that is nearing 10%, and markets have priced in further increases at each of the ECB's meetings through next spring. "There are reasons to believe that inflation may even go up a bit further over the short term," Schnabel told a conference organised by financial firm Spuerkeess of Luxembourg. "Inflation may actually be more persistent than we originally thought," she said, adding that price growth has broadened out and there is now a large share of goods with price growth over 3%. Read more.