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U.K. FIG Hints at Upturn

A leading indicator of underlying inflation in Britain edged up slightly for the third month in a row in March as part of a general recovery in global economic conditions, a leading research body said on Friday.

The Economic Cycle Research Institute (ECRI), a New York-based body that specialises in monitoring turning points in the business cycle, said its Future Inflation Gauge (FIG) had ticked up to 102.7 in March from 102.6 in February and a trough of 101.4 in December.

But Anirvan Banerji, director of research, told Reuters that this was only a gentle uptick so far on the back of the global industrial recovery currently underway.

"This is something to watch but not to worry about at the moment. Inflationary pressures are still subdued and the FIG is still not far above multi-year lows," he said.

Britain's underlying inflation rate has been tame in recent years, coming in under the Bank of England's 2.5 percent target for much of the past three years.