BANGALORE: Inflationary pressures in the euro zone reached a 26-month high in December but well below their 2008 peak, 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 (EFZIG) rose to 99.6 in December from 99.0 in November, pushed up by a spike of inflationary pressures in Germany that was only partially offset by lower pressure in France, Italy and Spain.
"Euro zone inflation pressures are climbing steadily and are now at their highest reading in over two years," said ECRI's Lakshman Achuthan.
ECRI said that despite being at a 26-month high the EZFIG remained far below its 2008 peak.
Official flash data showed harmonised consumer prices in the 17-nation common currency bloc rose 2.4 percent year-on-year in January, holding above the ECB's target of just below 2 percent for the second straight month.
Inflation is likely to climb further and could exceed the European Central Bank's target for most of the year but poses no threat yet to medium-term price stability, President Jean-Claude Trichet said at the February policy setting meeting on Thursday.
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