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U.S. Future Inflation Gauge Falls


An index designed to anticipate cyclical turning points in inflation eased again in December.

At the same time, a smoothed version of the annualized growth rate also remained soft in December, to a negative reading of 2.8% from an upward-revised negative reading of 2.5% (previously reported as down 3.4%) in November.

The Economic Cycle Research Institute said Friday that its Future Inflation Gauge decreased to 119.6 in December from an upward-revised 120.0 (previously reported at 119.4).

The gauge was pushed down in December mainly by disinflationary moves...

"The U.S. future inflation gauge remains in a cyclical downswing," said Lakshman Achuthan, managing director at ECRI. "In fact, U.S. inflation pressures have declined significantly since the fall of 2005."