ECB'S Constancio says policies firming inflation against oil, other shocks

JACKSON HOLE, Wyo. (Reuters) - European Central Bank Vice President Vitor Constancio said on Saturday the bank's asset purchases are helping firm inflation in the euro zone even as outside shocks like Greece and falling oil prices continue to hold it down.

"In December of last year, and January of this year we had negative headline inflation," Constancio said at a monetary policy conference here. Even though inflation remains low, it is at least positive.

"Channels of policy are working, were working significantly until June," when fresh drops in the price of oil, turmoil surrounding Greece and other issues pulled headline inflation back down, he said. "Think what would have happened if we had not adopted such a policy."

(Reporting by Howard Schneider; Editing by Andrea Ricci)