Oil price slump hurting ECB's stable price plan

Frankfurt

THE plunge in oil prices is making it tougher than ever for the European Central Bank (ECB) to achieve its core mission of keeping prices stable at a time it faces looming deflation, analysts say.

In the short term, the collapse of crude prices to five-year lows will curb inflation. But in the longer term, the slump could boost growth, which in turn would reverse the stubbornly low inflation worrying the eurozone, economists say.

ECB president Mario Draghi voiced concern this month over the fall in oil prices as the Frankfurt-based central bank battles to boost low …