Inflationary pressures on the rise in the eurozone: ECRI indicator

[LONDON] Inflationary pressures in the eurozone have inched up, suggesting prices will rise in the bloc in the coming months, 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, nudged up to 100.2 in July from June's 100.1.

"With the EZFIG edging back up in July towards May's 49-month high, eurozone inflation pressures continue to creep up," said Lakshman Achuthan, ECRI's chief operations officer.

Inflation in the bloc was the same 0.2 per cent year-on-year in August as it was in July, against market expectations of a slowdown.

On Thursday, the European Central Bank cut its inflation forecasts to 0.1 per cent for this year, 1.1 per cent in 2016 and 1.7 per cent in 2017.

REUTERS