VIENNA Tue May 27, 2014 5:26am

Inflation in the  will likely stay "significantly" below the European Central Bank's target this year and next, ECB Governing Council member Ewald Nowotny said in the Austrian National Bank's annual report.

"But over the medium term it is likely to align itself with the ECB's objective of keeping inflation below but close to 2 percent," he added in the report released on Tuesday.

He said an economic recovery in the  - and even more so in Austria - was showing signs of accelerating in 2014 and 2015.