Rising oil prices are pushing up inflation in the 27-nation European Union, but this isn't hurting growth for now, the bloc's commissioner for monetary affairs said Tuesday.

The EU forecasts oil prices to average $102 per barrel this year, with risks to the upside.

Commissioner Olli Rehn said much depends on developments in the Middle East and North Africa , where political uncertainty has pushed up crude oil prices to more than two-year highs. Still, the EU is not concerned with a double-dip recession.

"With these oil prices, the impact is still relatively limited on economic growth in Europe ," Rehn said at a news conference in Brussels Tuesday. His comments followed the EU's interim growth and inflation forecasts for 2011.

He said even if oil prices rise about 10% higher than expected this year, the impact on growth would be less than 0.1%.
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