ECB's Draghi Concerns of Lower Oil Price on Euro Zone Economy

European Central Bank President Mario Draghi said on Thursday the falling price of oil would have mixed impact on the euro zone, boosting the economy by removing costs but also dragging down already-weak inflation.

He expressed concern that the lower price might become "embedded" in lower wages.

The estimate for the direct and indirect impact of falling oil in inflation was 0.4 percent next year and 0.1 percent the year after.

"Oil prices have an obvious direct impact on the price of energy and on that ground, the effect is unambiguously positive," Draghi told a news conference.

But he said there were less positive effects on inflation.

"It could alter the profile of inflation rates over the coming months, especially the next few months," he said.

Euro zone inflation is well below the ECB's target and has promoted expectations of quantitative easing -- or sovereign bond buying -- early next year.