Bank of Spain sees inflation at around 0.4 percent by end of year

MADRID, March 12 Wed Mar 12, 2014 4:57am EDT

MADRID, March 12 (Reuters) - Bank of Spain Governor Luis Maria Linde said on Wednesday he saw annual Spanish inflation rising to around 0.4 percent or 0.5 percent by year end, though he said accurate predictions were difficult.

"The ECB aims to keep inflation at around 2 percent, and we're a long way from that right now. This is one more problem for the recovery. We think it will be around 0.4 percent or 0.5 percent," he said during a conference in Madrid.

Consumer prices in Spain were flat in February, official data showed on Wednesday.

Linde also said the European Central Bank may have to take new measures in the coming months as long-term financing operations for European banks, known as LTROs, expire in 2015