Euro zone inflation pressures ebbed further in August - ECRI

Reuters

BANGALORE (Reuters) - Euro zone inflation will ease further in coming months after price pressures fell to their lowest in almost four years, an indicator designed to predict cyclical trends showed on Friday.

The Euro zone Future Inflation Gauge (EZFIG), published by the Economic Cycle Research Institute, fell to a 44-month low of 89.7 in August from July's 91.3.

"Euro zone inflation is likely to stay weak in the months ahead," said Lakshman Achuthan, ECRI's chief operations officer.

Preliminary data earlier this week showed inflation fell faster than expected last month to its lowest since February 2010, signalling that the European Central Bank can maintain its loose monetary policy to help the bloc's recovery.

Consumer prices in the 17 countries using the euro rose 1.1 percent in September, compared with 1.3 percent in August, slightly below market expectations of 1.2 percent.

(Reporting by Yati Himatsingka; editing by Stephen Nisbet)

Rates

View Comments (0)