‘Eurozone entering low inflation period’

ECB president Mario Draghi has blamed the programme countries, Ireland, Italy, Portugal and Spain for the flagging inflation rate in Europe that is raising the spectre of a Japanese-style lost decade.

Speaking at the ECB press conference following the decision not to cut the key interest rates any further, Mr Draghi said that the eurozone was entering into a prolonged period of low inflation.

“There is certainly going to be subdued inflation, low inflation for an extended, protracted period of time, but no deflation,” he said.