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German FIG at 37-month high

Underlying price pressures in the euro zone rose in August as inflationary influences in Germany hit a 37-month high, 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) edged up to 96.4 in August from a downwardly revised 96.0 in July.

"While euro zone inflationary pressures picked up in August, actual euro zone inflation also picked up. Given the steady increase in EZFIG, the uptrend in euro zone inflation is likely to persist," ECRI said in a statement.

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 jumped to a 37-month high of 83.9 from July's upwardly revised 81.4...

The rise in inflationary pressures in Germany was partly offset by a fall in the Spanish index, which slipped to 118.6 in August from a downwardly revised 124.9 in the previous month.

"Despite its latest downtick, the (Spanish gauge) remains in a mild uptrend, suggesting that Spanish inflationary pressures are still edging up," ECRI said.

The French and Italian gauges were both unchanged on the month at 102.2 and 101.5, respectively.

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