President of European Central Bank Mario Draghi is on his way to a press conference following a meeting of the governing council in Frankfurt, Germany, Thursday, March 10, 2016. (AP Photo/Michael Probst)
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The European Central Bank is coming to terms with the idea that its near-2 percent inflation goal won't be materializing anytime soon. Bank staff downgraded their outlook to 0.1 percent headline inflation this year, forecasts released Thursday showed, with price pressures rising to 1.6 percent by 2018 – still short of policymakers' goal. This is a near-term concern for Draghi.When it comes to the prospects for inflation in a low-growth environment, Draghi sounds more hopeful than former ECB Governing Council member Luc Coene.Draghi noted that while increases in wages haven't yet materialized in a "significant way in the euro area," they need to arrive on the road to higher inflation.Draghi isn't despairing about inflation, but he's increasingly admitting that it could be a long time coming.
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