[LONDON] Inflationary pressures in the eurozone have ticked down but are still on a rising trend, according to an indicator issued on Friday that is designed to predict cyclical trends.
The Eurozone Future Inflation Gauge (EZFIG), a measure of the outlook for inflation published by the Economic Cycle Research Institute, dipped to 100.3 in June from May's four-year high.
"Despite its latest downtick, the EZFIG remains close to its earlier high. Thus, eurozone inflation pressures are still in a rising trend," said Lakshman Achuthan, ECRI's chief operations officer.
Euro zone inflation was unchanged at 0.2 per cent in July as a further decline of energy prices negated the impact of more expensive industrial goods and services, leaving the European Central Bank with more work to do to push up prices.