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U.S. FIG Moves Higher


U.S. inflation pressures may have bottomed out in the last few months and be on the rise, a monthly report showed on Friday.

The Economic Cycle Research Institute's Future Inflation Gauge, which is designed to anticipate cyclical swings in the rate of inflation, rose for the third straight month to 120.4 in September from an upwardly revised 119.0 in August, the research group said.

The index contrasts with a top Federal Reserve official's comments in a speech on Wednesday that interest rates are likely to remain at historically low levels for some time, playing down inflation pressures. "I don't see any real need to start fighting inflation," Federal Reserve Bank of Dallas President Robert McTeer said.

The index's annualized growth rate, which smooths out monthly fluctuations, jumped to 4.0 percent in September from a revised rate of 3.0 percent in August.

ECRI, a private research group, designs short- and long-term indices aimed at predicting business cycles, recessions and recoveries in the world's leading economies.