July 2, 2015 / 2:15 PM / 3 years ago

Euro zone inflation expectations gauge at near 8-month high

LONDON, July 2 (Reuters) - A key indicator of euro zone market inflation expectations rose to its highest in almost eight months on Thursday in a further sign the European Central Bank’s trillion-euro bond-buying programme may be working.

The five-year, five-year forward breakeven rate , which shows where investors expect 2025 price growth forecasts to be in 2020, rose to 1.8724 percent, its highest since early November, 2014.

Earlier, another indicator showed inflationary pressures in the currency bloc at a four-year high. The Eurozone Future Inflation Gauge (EZFIG), a measure of the outlook for inflation published by the Economic Cycle Research Institute, rose to 100.4 in May from April’s 100.2.

Inflation softened in the euro zone during June to 0.2 percent year-on-year, moving away from the European Central Bank’s target of close to 2 percent, official data showed on Tuesday. (Reporting by Emelia Sithole-Matarise; editing by Nigel Stephenson)

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