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Eurozone Future Inflation Dips

Underlying price pressures in the euro zone weakened a touch in January, 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 (EZFIG) slipped to 94.0 in January from a revised 94.1 in December.

"The EZFIG was pulled down in January by declines in inflation pressures in France, Italy and Spain, partly offset by inflation pressures that rose in Germany," ECRI said.

"Euro zone inflation has edged up in recent months following a gentle rise in the EZFIG last year. However, the EZFIG is far below its 2000 high, suggesting that euro zone inflation will stay subdued for now."

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