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Eurozone inflation pressures muted


Inflationary pressures have increased slightly in the euro zone but remain muted, likely doing little to allay fears about deflation in the 18-nation bloc, an indicator designed to predict cyclical trends showed.

The Eurozone Future Inflation Gauge (EZFIG), published by the Economic Cycle Research Institute, nudged up to 92.2 in February from 91.9 in January.

"Although the EZFIG rose in February, it stayed near its earlier lows. Thus, euro zone inflation pressures, while having edged up, remain restrained," said Lakshman Achuthan, ECRI's chief operations officer.

The European Central Bank left monetary policy on hold at its monthly meeting on Thursday, despite inflation being well below its target of close to 2 percent.

Consumer prices rose just 0.5 percent in March and ECB President Mario Draghi said on Thursday the bank is ready to deploy anything in its monetary policy toolbox if inflation stays too low for too long.

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