LONDON (Reuters) - Inflationary pressures in the euro zone have increased marginally but remain subdued, an indicator designed to predict cyclical trends showed on Friday.
The Eurozone Future Inflation Gauge (EZFIG), published by the Economic Cycle Research Institute, nudged up to 93.0 in March from 92.8.
“Although the EZFIG rose in March, it is not far from its earlier lows. As such, euro zone inflation pressures, while having edged up, are still restrained,” said Lakshman Achuthan, ECRI’s chief operations officer.
The European Central Bank is widely expected to leave monetary policy unchanged when it meets next week, despite inflation being well below its target of close to 2 percent.
Consumer prices rose just 0.7 percent in April, below expectations and still within the ECB’s “danger zone” of under 1 percent.
Reporting by Jonathan Cable; Editing by Toby Chopra