After Brexit, Draghi faces oil hurdle on path to higher inflation

Frankfurt

WHENEVER Mario Draghi clears a hurdle on his path to higher inflation, a new one appears.

Just as the 19-nation economy sends encouraging signals that challenges from Brexit to terrorism won't derail the modest recovery, a new decline in oil prices is casting a shadow over an expected pick-up in inflation. With growth not strong enough to generate price pressures, the European Central Bank (ECB) president may have to revise his outlook yet again.

Inflation remains far below the ECB's 2 per cent goal after more than two years of unprecedented stimulus and isn't seen reaching it before 2018. Staff will begin to draw up fresh forecasts in mid-August, and while officials are in no rush to adjust or expand their 1.7 trillion-euro (S$2.5 trillion) quantitative-easing plan in September, economists predict Mr Draghi will have …