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Eurozone FIG hits a 29-month high


Eurozone inflation pressures hit a 29-month high, suggesting the European Central Bank's slew of policy easing measures might stave off deflation, an indicator designed to predict cyclical trends showed on Friday.

The Eurozone Future Inflation Gauge (EZFIG), published by the Economic Cycle Research Institute, rose to 97.7 in August from 97.5 in July.

"With the EZFIG increasing again in August, it points to a likely bottom in Eurozone inflation in the coming months," said Lakshman Achuthan, ECRI's chief operations officer.

On Thursday, ECB president Mario Draghi said the bank would buy bundles of loans and other form of secured debt from mid-October.

Annual inflation fell to a five-year low of 0.3 percent in September according to a flash estimate, well below the ECB's target of just under 2 percent and what it terms the "danger zone" of 1 percent.

VIEW THIS ARTICLE ON REUTERS