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Eurozone Price Pressures Ease

Underlying price pressures in the eurozone softened in May as inflationary influences eased in Germany, Italy and Spain, 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 96.8 in May from an upwardly revised 97.5 in April.

"The EZFIG fell in its latest reading and remains well below its October high (of 99.1)," the New York-based institute said. "Thus, actual inflation in the eurozone is likely to remain subdued for now."

The eurozone's latest official inflation reading showed year-on-year price growth at 2.1 percent in June, up from 1.9 percent the previous month and just above the European Central Bank's target ceiling of 2.0 percent.

The ECRI 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 dipped to 79.5 from April's 80.5...

The Spanish gauge fell to 142.3 from an upwardly revised 145.1 and the Italian index nudged lower to 100.4 from an upwardly revised 100.5 the previous month.

"The (Italian gauge) slipped in its latest reading but remains in a modest uptrend. Thus, Italian inflation pressures remain somewhat elevated," ECRI said.

The French index was unchanged at 102.1, and ECRI said it signaled that inflationary pressures in the French economy remained subdued.

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