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ECB's Praet says impact of oil fall on inflation not temporary: newspaper

European Central Bank Executive Board member Peter Praet gives a speech during a meeting organised by the Grand Conferences Catholiques in Brussels January 14, 2013. REUTERS/Eric Vidal

FRANKFURT (Reuters) - The impact of the falling price of oil on inflation is not temporary, the European Central Bank’s chief economist wrote in a German newspaper on Wednesday, adding it would stick to its price target.

Writing in German newspaper Sueddeutsche Zeitung, Peter Praet said that falling oil prices hit inflation, adding: “The effect on inflation, however, is not negligible or temporary.”

Praet, who sits on the Executive Board that is at the core of ECB policy setting, said the ECB would stand by its goal of reaching inflation in the medium term of close to 2 percent.

“In difficult times particularly, we must stick to our goal.”

Reporting By John O’Donnell

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