LONDON (Reuters) - Inflation pressures in the euro zone have risen, suggesting the European Central Bank’s 1-trillion-euro bond buying program may be working, an indicator designed to predict cyclical trends showed on Friday.
The Eurozone Future Inflation Gauge (EZFIG), a measure of the outlook for inflation published by the Economic Cycle Research Institute, climbed to 98.7 in March from February’s 97.6.
“With the EZFIG climbing to a three-and-a-half year high in March, euro zone inflation is poised to rise further in the coming months,” said Lakshman Achuthan, ECRI’s chief operations officer.
Data last week showed the euro zone ended four months of deflation in April with consumer prices unchanged from year-ago levels.
Reporting by Jonathan Cable; editing by John Stonestreet