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Euro zone inflation pressures decline further


Euro zone inflation will ease further in the coming months as price pressures have fallen to their lowest level in almost four years, an indicator designed to predict cyclical trends showed on Friday.

The Eurozone Future Inflation Gauge (EZFIG), published by the Economic Cycle Research Institute, fell to a 46-month low of 89.6 in September from August's 89.7.

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

Preliminary data on Thursday showed inflation fell much faster than expected last month suggesting 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 0.7 percent in October, the slowest in nearly four years, compared with 1.1 percent in September, well below market expectations of 1.1 percent and the ECB's target ceiling.

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