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EZ FIG Rises

Inflationary pressures in the euro zone in April were back at February's 29-month high and rooted in a strong cylical upswing, according to a forward- looking indicator from the Economic Cycle Research Institute. New York-based ECRI said its Eurozone Future Inflation Gauge (EFZIG) rose to 102.5 in April. The March figure was downwardly revised to 102.3 from 102.7.

The latest reading was pushed up by rising inflationary pressures in Germany and Italy while France saw it slowing down. Spain remained unchanged from March.

"As anticipated by the earlier upturn in the EZFIG, euro zone inflation remains in a strong cyclical uptrend. Meanwhile, the EZFIG remains at February's 29-month high," said ECRI's Lakshman Achuthan.

The European Union's statistics office estimated that inflation in the 17 countries using the euro was 2.7 percent year-on-year in May, down from 2.8 percent in April.