ECB's Draghi says risk of deflation higher than a year ago: paper

[FRANKFURT] There is a higher risk of deflation in the eurozone now than a year ago, European Central Bank President Mario Draghi told German weekly Die Zeit in an interview.

"That means that the risk of deflation is still low, but it is definitely higher than a year ago," Mr Draghi was quoted as saying in the interview that will be published on Thursday.

He added that lower oil prices were good, although not so good in the sense that they influence inflation expectations. The danger was that consumers start to doubt whether inflation will go back up to 2 per cent soon, or even in five years.

"And that alone would increase the danger of a recession," Mr Draghi said.

Eurozone consumer prices turned negative in December.

REUTERS