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But the ECB seems unlikely to cut interest rates until inflation dips below 2%.
If there is slack in the economy or inflation dips, policy should be eased.Of course the Taylor rule is only a rough guide.
There has been a lot of speculation in the past few days that some form of QE will be adopted in Europe, particularly if inflation dips further and certainly if it moves negative.
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Consumer inflation dipped further last month due to lower food prices.
Spending abroad during the same period, when adjusted for inflation, dipped from £31bn to £22bn.
WITH euro-zone inflation dipping to a record-breaking low of 0.4% last month, officials at the European Central Bank (ECB) have been scrambling to find ways to boost the economy.
Soaring energy prices account for most of that gain, and the 12-month figure may be misleading since inflation dipped last fall.
Canada's annual rate of inflation dipped to 3percentt in January from 3.2percentt in December, mainly because of lower prices for new vehicles and smaller increases for natural gas and heating oil.
Howard Archer, of consultancy IHS Global Insight, said: "July's marked strengthening in earnings growth, coupled with consumer price inflation dipping to 0.0% in August, is very good news for consumers' purchasing power".
But after a rise in the consumption tax in April, the economy slowed and in September core inflation dipped to Mr Kuroda's threshold.In this section Welcome back to Washington Temple madness Marijuana milestone Big bazookas How to lie with indices ReprintsThe BoJ was right to move boldly.
The core CPI, which excludes food and energy prices, rose by 0.3% in June, compared with 0.1% in May.The Dow Jones Industrial Average rose by 3.2%; but the dollar fell to a two-month low against the euro.Inflation dipped in the euro area.
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