German inflation falls as oil price tumbles (FT)

Tumbling oil prices on Monday led to a sharp drop in German inflation, boosting the chances of the eurozone rate falling later this week below the European Central Bank’s 2 per cent target for the first time in 20 months.

The steep fall in energy costs this month will cheer the ECB as it attempts to bring headline inflation back in line with its target of “below but close” to 2 per cent.