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Euro FIG at 28-month high

Euro zone inflationary pressures hit a 28-month high in January, according to a forward-looking indicator released by the Economic Cycle Research Institute .

The Eurozone Future Inflation Gauge (EFZIG), an indicator designed to predict inflation trends, rose to 102.1 in January from 101.6 in December. New York-based ECRI said euro zone inflationary pressures are in a cyclical uptrend, led by Germany, France and Spain.

Official euro zone inflation accelerated to 2.4 percent last month, moving further above the European Central Bank's target of just below 2 percent.

ECB President Jean-Claude Trichet at his monthly press conference on Thursday hinted at the possibility of an interest rate hike as early as April.

Thirty-nine of 49 economists polled by Reuters after the central bank's March meeting said a rate hike from the current record low of 1.0 percent would come next month.

Flashback to Jan. 07 2011 -- ECB vs. Eurozone Future Inflation Gauge

(Reuters) European Central Bank President Jean-Claude Trichet said on Friday he saw no danger of inflation taking off in the euro zone, dismissing any concerns about rising price pressures in the currency area.

Trichet made his comments after data earlier this week showed euro zone inflation rose 2.2 percent year-on-year in December, exceeding the ECB's target for the first time in two years.

Inflation expectations also surged in the last month of 2010, and a forward-looking indicator from the Economic Cycle Research Institute showed inflationary pressures built up to a 25-month high in the euro zone during November on the back of upturns in Germany and France...