Contact

A Framework That Provides Clarity

During periods of “low visibility,” confusion reigns: for every indication of one trend, there seems to be a countertrend. The key is to glean from the collective wisdom of reliable leading indicators a clear signal that the economy is headed for a turn.

News

 

Eurozone inflation pressures rise but remain subdued


Eurozone inflation will remain muted in the coming months as inflationary pressures are hovering near August's 44-month low, 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 91.1 in November from October's 90.4.

"Although the EZFIG has increased for three consecutive months, it remains in a cyclical downtrend and close to August's 44-month low. Eurozone inflation pressures are still quite muted," said Lakshman Achuthan, ECRI's chief operations officer.

Preliminary data on Tuesday showed inflation fell in December, increasing the European Central Bank's challenge of avoiding deflation as well as supporting the bloc's recovery.

VIEW THIS ARTICLE ON REUTERS

Related News & Events

Becoming Japan: Update

ECRI December 11, 2013

The ECB rate cut was spurred by a “surprise” drop in Eurozone inflation in Oct. But, U.S. inflation was even lower then, and the Fed’s key inflation measure fell further below its 2% target. More