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Eurozone Inflation Pressures Dip

A gauge of future inflation pressure in the euro zone dipped in April although it remained at high levels and in an upward trend, a report said on Friday.

The Economic Cycle Research Institute reported its Eurozone Future Inflation Gauge fell to 105.3 in April from 105.7 in March but said inflation pressures "remain elevated".

"Though the EZFIG declined a bit in April, it remains in a mild uptrend, suggesting that actual inflation in the Eurozone will pick up further," the report said.

ECRI's German future inflation gauge hit a 6-1/2 year high in April, while pressures also rose in France, offset by lower inflation in Italy and Spain.

Data on Thursday showed official euro zone inflation held at 1.9 percent in May, just below the European Central Bank's 2.0 percent ceiling. However, an interest rate rise to 4.0 percent next week seems a done deal and a followup increase likely.