Factory price fall could spur ECB

Analysts yesterday suggested that falling producer prices could drive the European Central Bank (ECB) to cut rates. Data put out by Eurostat showed producer prices were down 0.2 per cent in December, following a fall of the same size the month before, and suggesting consumer price inflation could fall even further than the 26-month low of two per cent achieved in January – giving the bank leeway to cut rates to boost demand.