Deflation risk is increasing, says economy minister

(AGI) Rome, Sept 29 - The risk of deflation "could beincreasing", said Italy's Economy Minister Pier Carlo Padoan,during his reply to the Inter-parliamentary Conference on theFiscal Compact on Monday. "We are beginning to see signs thatshort-term expectations are being transmitted to the long-term,which means that the risk of deflation could increase," saidthe minister. "However, I am convinced that the ECB is totallyin control of this phenomenon and is also preparing to useother instruments to deal with the situation," he added. . .

(AGI) Rome, Sept 29 - The risk of deflation "could beincreasing", said Italy's Economy Minister Pier Carlo Padoan,during his reply to the Inter-parliamentary Conference on theFiscal Compact on Monday. "We are beginning to see signs thatshort-term expectations are being transmitted to the long-term,which means that the risk of deflation could increase," saidthe minister. "However, I am convinced that the ECB is totallyin control of this phenomenon and is also preparing to useother instruments to deal with the situation," he added. . .