FRANKFURT (Reuters) - There are tentative signs of a build up of producer prices in the euro zone, European Central Bank President Mario Draghi said on Thursday, but there is not enough evidence to change the bank’s monetary policy.
“We have not seen sufficient evidence to alter our assessment of the inflation outlook, and we are not sufficiently confident that inflation will converge to levels consistent with our inflation aim in a durable and self-sustaining manner,” he told a news conference.
Draghi did say, however, that the risk of deflation had virtually disappeared.
The ECB expects inflation in the bloc to slowly reach its target of at or just below 2 percent. It was at 1.5 percent in March.
Written by Jeremy Gaunt; editing by Richard Lough