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Euro zone inflationary pressures hit 27-month high

Inflationary pressures in the euro zone have risen to a 27-month high, suggesting the European Central Bank's efforts to fend off deflation are working, 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 96.7 in June from April's 96.2.

"The EZFIG rose further in June to a 27-month high, pointing to a likely bottom in euro zone inflation in the coming months," said Lakshman Achuthan, ECRI's chief operating officer.

Annual inflation in the euro zone fell to just 0.4 percent in July, its lowest since the height of the financial crisis in 2009, official data showed on Thursday.

ECB President Mario Draghi announced a raft of measures in June to counter the threat of deflation, including cutting the deposit rate below zero and offering more long-term loans aimed at boosting bank lending to businesses.