Signs of European return to healthy inflation 'weakened'

Signs of a return to healthy inflation levels in Europe are fading, ECB chief Mario Draghi warned Thursday, announcing the bank would re-examine the scale of its anti-deflation defences in December. In a new sign that the European Central Bank could ramp up its controversial asset purchase programme to boost inflation, Draghi pledged to use “all the instruments available within our mandate” to put the eurozone back onto the path of positive price stability. In March, the ECB launched a quantitative easing (QE) scheme to buy more than 1.1 trillion euros ($1.2 trillion) in sovereign bonds at a rate of 60 billion euros per month at least until September 2016, in order to kickstart inflation, which eased to minus 0.1 percent in September before bouncing to 0 percent in October.

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