Euro zone inflation seen well below 2 percent in 2014-15: Nowotny

VIENNA Tue May 27, 2014 5:26am EDT

An illuminated euro sign is seen in front of the headquarters of the European Central Bank (ECB) in the late evening in Frankfurt January 8, 2013. REUTERS/Kai Pfaffenbach

An illuminated euro sign is seen in front of the headquarters of the European Central Bank (ECB) in the late evening in Frankfurt January 8, 2013.

Credit: Reuters/Kai Pfaffenbach

VIENNA (Reuters) - Inflation in the euro zone will likely stay "significantly" below the European Central Bank's target this year and next, ECB Governing Council member Ewald Nowotny said in the Austrian National Bank's annual report.

"But over the medium term it is likely to align itself with the ECB's objective of keeping inflation below but close to 2 percent," he added in the report released on Tuesday.

He said an economic recovery in the euro zone - and even more so in Austria - was showing signs of accelerating in 2014 and 2015.

(Reporting by Michael Shields; Editing by Georgina Prodhan)