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Eurozone FIG Eases


Price pressures in the euro zone eased in November, largely due to weaker inflation influences in Germany, an index compiled by the Economic Cycle Research Institute showed on Friday.

ECRI, which designs indices aimed at predicting business cycles in leading economies, said its Eurozone Future Inflation Gauge slipped to 93.4 in November from a revised 93.6 in October.

"Underlying inflation pressures in the euro zone are higher than they were last summer," ECRI said. Even so, "with its latest dip, the (gauge) suggests that...euro zone inflation will stay relatively subdued for now."

The euro zone gauge aims to anticipate cyclical swings in the region's inflation rate and changes in official interest rate policy by measuring underlying inflationary pressures, rather than actual inflation rates.

It is similar to ECRI's inflation indices for the United States, Britain and Japan.

The gauge for Germany fell to back to its August level of 78.1 in November from 80.7 in October, signalling that German inflation may decline further, ECRI said.

Price pressures rose in Italy to 99.0 from 98.4 and in Spain to 117.2 from 110.8, but ECRI said inflation in both countries was likely to remain 'relatively tame' in coming months.

The gauge was unchanged in France at 102.1, a 39-month low.

The euro zone gauge uses a weighted average of ECRI's indices for Germany, France, Italy and Spain.