With confidence deflated in euro area, ECB must provide a stimulus

Mario Draghi this week faces one of the dominant challenges for the euro-area economy in 2015, writes Catherine Bosley

Mario Draghi, president of the European Central Bank, will this week face one of the dominant challenges for the euro-area economy in 2015.

In December, consumer prices recorded the first annual decline in more than five years, amid a slide in the cost of oil, aggravating concern at the ECB that subdued inflation will become entrenched.