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U.S. Future Inflation Gauge Falls


U.S. inflation pressures slipped in November..., according to a report on Friday.

The Economic Cycle Research Institute's U.S. Future Inflation Gauge, which is designed to anticipate cyclical swings in the rate of inflation, fell to 121.6 in November from an upwardly revised 124.3 in October.

The index's annualized growth rate, which smoothes out monthly fluctuations, fell to 3.1 percent from an upwardly revised 8.2 percent in October.

"The USFIG has come off from October's five-and-a-half-year high, but underlying inflation pressures are still elevated," Lakshman Achuthan, managing director for ECRI, said in a report.

"However, if the USFIG keeps falling, there should be a reversal of the cyclical upswing in inflation pressures that began at the end of 2003," the report said.