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U.S. Future Inflation Gauge Falls


U.S. inflation pressures fell in June to more than a four-year low... a report 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 115.2 in June from 116.6 in May revised from 116.7.

The reading was the lowest since January 2004, when the index stood at 114.8.

"Despite higher oil prices and the weaker dollar, the USFIG continues to slide as underlying inflation pressures in the U.S. remain in a cyclical downtrend," said Lakshman Achuthan, managing director at ECRI, in an instant message interview.

"This decline in the USFIG stands in stark contrast to the comparable Euro zone FIG, which raced to a 17-year high today."

The USFIG annualized growth rate, which smooths out monthly fluctuations, fell in June to minus 3.9 percent from minus 2.4 percent in May, revised down from negative 2.2 percent.
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