Euro zone inflation set to fall: ECRI

LONDON Fri Jan 4, 2013 5:37am EST

Shoppers browse among vegetables at a Morrisons supermarket store in London November 21, 2012. REUTERS/Luke MacGregor

Shoppers browse among vegetables at a Morrisons supermarket store in London November 21, 2012.

Credit: Reuters/Luke MacGregor

LONDON (Reuters) - Euro zone inflation could continue to fall as price pressures held steady in November, hovering near June's 27-month low, according to an indicator designed to predict cyclical trends published on Friday.

The Eurozone Future Inflation Gauge (EFZIG) produced by the Economic Cycle Research Institute (ECRI) held at 92.2 in November, as similar national gauges fell in Germany but rose in Italy and Spain. France's index was unchanged.

"The EZFIG was unchanged in November, and is in a prolonged cyclical downtrend, continuing to hover near June's 27-month low. Thus, euro zone inflation pressures remain weak," said Lakshman Achuthan, ECRI's chief operations officer.

Headline inflation in the 17-nation currency bloc eased to 2.1 percent in December from 2.2 percent the previous month, flash data due later on Friday is expected to show, its lowest level in two years.

A Reuters poll published last month predicted inflation would fall steadily this year.

(Reporting by Jonathan Cable; Editing by Toby Chopra)

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