Contact

News

 

Eurozone Future Inflation Slips


A barometer of future euro zone inflation eased in October to a seven-month low, the Economic Cycle Research Institute said in a report yesterday.

The data came a day after the European Central Bank raised interest rates to a five-year high of 3.5 percent, as widely expected, but also revised down its inflation forecasts for this year and next.

The Eurozone Future Inflation Gauge, which aims to predict cyclical turns in euro zone inflation, fell to 104.3 in October from 105.2 in September, mainly thanks to falling inflationary pressures in Germany, Italy and Spain.

"The gauge fell in October to a seven-month low, indicating that inflationary pressures in the euro zone economy are easing further," ECRI said in a release.

Euro zone inflation is currently running at 1.8 percent. Interest rates are still expected to rise again in the first quarter of next year, and could touch 4.0 percent at some point in 2007, a Reuter's poll showed on Thursday.