Euro zone inflation pressures to ease

Gauge falls to a 40-month low in June

Euro zone inflation will ease in the coming months after price pressures fell further from the three-year lows hit in May, an indicator designed to predict cyclical trends showed today.

The Eurozone Future Inflation Gauge (EZFIG), published by the Economic Cycle Research Institute, fell to a 40-month low of 91.2 in June from May’s 91.8.

"Euro zone inflation will stay in a downturn in the months ahead," said Lakshman Achuthan, ECRI's chief operations officer.

Preliminary official data earlier this week showed consumer prices remained stable last month giving the European Central Bank room to ease policy if needed.

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Consumer price inflation was unchanged at 1.6 per cent year-on-year in July.

Reuters