Low inflation warnings ‘irrational’: Ex-ECB’s Stark

From cnbc.com

Consumer prices in the euro zone are stable rather than too low, former European Central Bank (ECB) board member Jürgen Stark said, countering a widely held view that the current low level of inflation could derail the economic recovery in the euro zone. "I miss the term price stability…Low inflation and price stability will boost real disposable income and will help to foster private consumption. This is good news," Stark told CNBC in an interview. Consumer prices rose by 0.5 percent year-on-year in May, according to official statistics released by Eurostat earlier this month. This marked a fall from April's ... (full story)