Price plunge won't herald deflation: ECB's Mersch

Though a fall in the price index at some point in 2009 is likely, such a slump should not be seen as a harbinger of deflation, Yves Mersch, the governor of the Central Bank of Luxembourg and a member of the European Central Bank's (ECB) Governing Council, has said.

"I would not rule out that over one or two months next year we might have a falling price index," Mersch told Dow Jones, a newswire, on Thursday. "We have to look beyond such short-term falls, just as we looked beyond short-term in

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