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Eurozone Future Inflation Eases

Euro zone inflationary pressures eased slightly in June but picked up in Germany, a forward-looking indicator of inflation produced by the Economic Cycle Research Institute (ECRI) showed on Friday.

The Eurozone Future Inflation Gauge, which aims to predict cyclical turns in inflation, slipped to 109.4 in June but is still holding near May's 17-year high of 110.0.

New York-based ECRI said in an accompanying report that the index eased slightly due to declining inflationary pressures in Italy, France and Spain. They contrasted with another rise in Germany to a fresh 26-year high.

"Inflation in the euro zone remains in a clear cyclical uptrend," the report said.

Official euro zone inflation hit a series record high of 4.1 percent in July after crude oil prices raced above $147 a barrel during the month before easing sharply in the last two weeks.

The European Central Bank raised interest rates in July to 4.25 percent despite cooling growth as inflation is more than double its 2 percent ceiling.