ECB’s Constancio feels euro zone inflation in 2009 may come in below expectations, but that it doesn’t mean deflation and no deflationary spiral is expected for 2010.
Speaking at a banking conference the official said “Inflation levels now foreseen for this year are very low, maybe even below what had been expected” adding “For 2010, nobody is expecting risks of a deflationary spiral, which would be extremely dangerous and something the monetary policy has to avoid at any cost.”
