US Inflation Pressures Fall to 47-Year Low

Reuters
December 05, 2008

(Reuters) - NEW YORK, Dec 5 (Reuters) - U.S. inflation pressures fell
in November to their lowest in more than 47 years, pulled down
by broad-based disinflationary moves, a research group said on
Friday.

The Economic Cycle Research Institute's U.S. Future
Inflation Gauge (USFIG), designed to anticipate cyclical swings
in the rate of inflation, slipped to 88.5 in November from 92.7
in October, which was revised from 95.5.

The reading was the lowest since February 1961, when it
stood at 87.2 according to ECRI data.

"With the USFIG nose-diving to its lowest reading since
1961, U.S. inflation pressures have collapsed," Lakshman
Achuthan, managing director at ECRI, told Reuters.

The USFIG annualized growth rate, which smooths out monthly
fluctuations, fell in November to minus 35.3 percent from minus
31.8 percent in October, revised down from negative 28.1
percent.