LONDON (Reuters) - Inflationary pressures in the euro zone 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, euro zone inflation pressures continue to creep up,” said Lakshman Achuthan, ECRI’s chief operations officer.
Inflation in the bloc was the same 0.2 percent 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 percent for this year, 1.1 percent in 2016 and 1.7 percent in 2017.
Reporting by Jonathan Cable; editing by John Stonestreet