ATHENS (Reuters) - Inflation in the euro zone is seen at about 2 percent in the medium term and so there is no clear deflation risk among the 18 countries that share the single currency, Italian Economy Minister Pier Carlo Padoan said in Athens on Tuesday.
“There are no evident risks of deflation and this is based on the fact that inflation expectations in the medium term are anchored at normal levels of around 2 percent, which is the medium-term target for the euro zone,” Padoan said after a meeting of the bloc’s finance ministers.
“That said, economic policy authorities are attentively monitoring how the situation is evolving... there will be a central bank board meeting on Thursday in which the situation will be further examined.”
Inflation has been stuck in what the European Central Bank calls the “danger zone” below 1 percent since October, and it dropped further in March to its lowest level in more than four years.
Reporting by Jan Strupczewski and Giselda Vagnoni, writing by Steve Scherer