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Eurozone inflationary pressures ease in May

Inflationary pressures in the eurozone eased to a five-month low in May, according to an indicator designed to predict inflation trends from the Economic Cycle Research Institute.

New York-based ECRI said its Eurozone Future Inflation Gauge (EZFIG), fell to 101.2 in May from 102.7 in April.

The latest reading showed inflationary pressures eased in the big four economies of France, Germany, Italy and Spain.

'With the EZFIG falling in May to a five-month low, eurozone inflationary pressures have begun to ebb,' said ECRI's Lakshman Achuthan.

Data released last week showed inflation held at 2.7 per cent in June, considerably above the European Central Bank's 2 per cent target ceiling.

The ECB raised interest rates for the second time this year on Thursday and signalled further policy tightening to come to tackle inflation despite the eurozone's intensifying debt crisis.