(MENAFN- Qatar News Agency) European Central Bank (ECB) president Mario Draghi on Saturday at the annual World Economic Forum attempted to dampen worries of deflation in the European Union, saying that currently low inflation was a byproduct of economic reforms.
Price adjustments in the four eurozone countries that were bailed out after the financial crisis - Greece, Ireland, Portugal and Spain - are partly the reason for slowing inflation, Draghi said on the third and final day of this year's meeting of business and political leaders in the Swiss town of Davo
"In the medium term we believe inflation will go up to a level that is close to 2 per cent," Draghi said, arguing that the price adjustment factor would disappear once economic recovery accelerate
The comments came in response to an estimate by International Monetary Fund chief Christine Lagarde, who said that the risk of deflation this year was as high as 20 per cent, especially if the European Union was exposed to a further economic shoc
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