June 9, 2002	Sunday	Rabi-ul-Awwal 27,1423

MUNICH, June 8: European Central Bank council member and Bundesbank president Ernst Welteke said on Saturday that statistical effects may push June euro zone and German inflation away from this year4s lows reached in May.

An early estimate showed inflation in the 12 nation single currency area falling to the ECB4s two percent ceiling in May from 2.4 percent in April, reaching the bank4s self-imposed limit for the first time this year.

Inflation has come down from its peak in May 2001 and fell to 1.2 per cent in Germany and two percent in the euro zone. It may not stay there in the following month because of statistical basis effects, Welteke told reporters on the sidelines of an economic conference on the European Union enlargement.

Asked whether the enlargement of the single currency area by up to 12 mainly central and eastern European countries could affect the euro4s exchange rate, Welteke said it was unlikely given the relatively small size of their economies.—Reuters