Eurozone Future Inflation Gauges Rising

Underlying price pressures in the euro zone rose in April to their highest level since September 2001, 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) rose to 95.3 in April from a downwardly revised 93.3 in March.

"Euro zone inflation pressures... are climbing at the fastest pace in four years," ECRI said in a statement.

"Thus euro zone inflation is likely to trend up quite clearly in the months ahead."

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 gauge for Germany climbed to a 31-month high of 81.2 in April from 78.5 the previous month...

In France, the index edged up to 102.0 in April from an upwardly revised 101.9 in March.

"With the economy in a recovery, the French Future Inflation Gauge (FFIG) is in a clear cyclical upswing," ECRI said.

The Italian index ticked up to 99.0 from March's upwardly revised 98.7, and the Spanish index rose to 125.0 from a downwardly revised 116.9.

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