Inflation is not yet out of control in the United States, according to former Fed Chairman Alan Greenspan, speaking via satellite link to a conference in Athens, Greece.

Nevertheless, the markets are moving towards a more inflation-prone environment, added the retired central banker.

Greenspan also said that the recent surges in oil and grain prices had been driven by economic fundamentals, although he admitted uncertainty about whether or not an asset price bubble existed in the oil markets.



Greenspan added that, given non-disinflation conditions, the probability of another bubble was small.

By Erik Kevin Franco and edited by Cristina Markham