ECB looks set to hike rates despite fall in factory gate prices across eurozone

The European Central Bank is set to increase its key rate by 50 basis points, or half a point, at each of the next two meetings before slowing to 25 basis-point pace after that.

Eurozone industrial producers, or factory gate prices, fell in January from December, with Ireland posting the sharpest decline, but the European Central Bank will still hike official interest rates, economists say.        

The Eurostat figures show eurozone industrial producer prices fell by 2.8% in the month, with prices in Ireland tumbling by over 25%.