ECB's Trichet says "strong vigilance" warranted

FRANKFURT, March 3 (Reuters) - Inflationary pressures have increased over the last month, risks are to the upside and "strong vigilance" is required, European Central Bank President Jean-Claude Trichet said on Thursday.

"Strong vigilance is warranted with a view to containing upside risks to price stability," Trichet told a news conference after the bank kept interest rates at a record low of 1 percent EUECBR=ECI.

He said inflation pressures had increased since the ECB last met a month ago, largely due to a rise in commodity prices, adding that price risks were on the upside.

The ECB used the phrase "strong vigilance" repeatedly during its 2005-2007 rate hike cycle, typically one month before it raised rates, although there were exceptions to that rule. It is not clear whether the verbal signal still holds good.

Euro zone inflation accelerated to 2.4 percent last month, moving further above the ECB's target of just below 2 percent. (Writing by Paul Carrel, editing by Mike Peacock)