Top ECB official sees negative inflation rate in months ahead

BERLIN: European Central Bank (ECB) vice-president Vitor Constancio said in a magazine interview that he expected the eurozone inflation rate to turn negative in the coming months but that if this was just a temporary phenomenon, he did not see a risk of deflation.

Annual inflation in the eurozone slowed to 0.3% in November as energy prices fell, putting it well below the ECB’s target for inflation close to but just below 2%.