JACKSON HOLE, Wyo Aug 22 A further drop in
European inflation would pose price stability risks and the
European Central Bank would use "all the available instruments"
in response, ECB President Mario Draghi said on Friday.
"The governing council will acknowledge these developments
and within its mandate will use all the available instruments
needed to ensure price stability over the medium term," Draghi
said at a lunch event here at the Federal Reserve's annual
Draghi, however, said he thought the drop in European
inflation was due to temporary factors such as energy prices and
the crisis in Ukraine.
(Reporting by Howard Schneider and Michael Flaherty; Editing by