FRANKFURT (AFX) - The European Central Bank warned that euro zone inflation rates are set to hover around its price stability ceiling of 2 pct in the second half of the year, even though there may be a decline in the short term. "While a further decline in HICP inflation is possible in the short run... inflation rates are expected to hover around 2 pct in the second half of 2002," the ECB said in its June monthly report. According to Eurostat, euro zone inflation fell to 2 pct in May from 2.4 pct a month earlier, but the ECB cautioned in the monthly report that this was mainly due to base effects from 2001's high food and energy prices.