There is no serious risk of deflation in the euro zone, nearly every one of them says, and from here onward, euro zone inflation will only be higher than the March trough of 0.5 percent.
That is the line you need to take if you are not yet willing to say that the central bank, which has chopped policy rates all the way to the floor, is more likely than not to print money to get out of the mess.
The ECB’s mandate is very narrow, and very clear. It aims for price stability in the form of inflation just below 2 percent.
The main reason for the fall from 2.5 percent nearly two years ago to 0.5 percent now is a drop in energy prices. But that doesn’t explain where inflation will go from here.