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Eurozone inflation pressures edging higher

Euro zone inflation will probably bottom out in the coming months, suggesting the European Central Bank may be successful in its battle to ward 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 97.5 in September. The August number was revised down to 97.1 from 97.7.

"With the EZFIG creeping up in recent months, euro zone inflation will likely bottom out in the months ahead," said Lakshman Achuthan, the institute's chief operating officer.

Inflation in the 18 countries sharing the euro edged up slightly in October to 0.4 per cent, stubbornly holding in what the ECB terms the "danger zone".

The ECB left monetary policy unchanged on Thursday but bank president Mario Draghi said its members remained prepared to take more action if necessary.


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