May 12, 2014 / 10:17 AM / 3 years ago

ECB's Constancio sees inflation below 1 pct for some time

VIENNA, May 12 (Reuters) - Inflation in Europe will probably stay below 1 percent for an extended period, European Central Bank Vice President Vitor Constancio said on Monday.

"The burden of servicing the debt and reducing the debt ratio, when nominal (economic) growth is so low, it's a possible cause of drag," he told a conference on banking union in Vienna when discussing lower growth and inflation in Europe versus levels in the United States.

"We just have to look that since mid-2012 - when inflation was well above 2 percent in Europe - until now when it is indeed below 1 and very likely will stay below 1 for quite some time, the effect of the appreciation of the euro during this period explains the reduction in a inflation rate by 0.5 percentage points," he added.

Reporting by John O'Donnell and Michael Shields

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