ECB says inflation fall delayed by food scares

European Central Bank chief economist Mr Otmar Issing said today that there was likely to be a clear delay in the expected drop…

European Central Bank chief economist Mr Otmar Issing said today that there was likely to be a clear delay in the expected drop in euro zone inflation to below the ECB's two per cent ceiling.

Mr Issing told reporters that inflation was currently being pushed up by a rise in food prices caused by the mad cow disease and foot-and-mouth disease scares, which are however temporary.

Asked whether data this week showing a rise in German inflation in April indicated that euro zone inflation may not fall below two per cent this year, Mr Issing said: "The point at which inflation falls below two percent clearly has been pushed back."