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LONDON (MarketWatch) -- European Central Bank President Jean-Claude Trichet reiterated in testimony before a European Parliament committee Wednesday that the central bank remains on "heightened alert" against inflation. Trichet earlier this month warned that the central bank might raise its key interest rate in July to ensure inflation expectations remain anchored. Trichet repeated concerns that surging, near-term inflation pressures could become entrenched, saying the ECB would continue to closely monitor developments. Trichet said economic growth is set to slow, likely reaching a low in the middle of the year. The euro pushed higher during the testimony and remains up around 0.2% against the U.S. dollar at $1.5596.