U.S. Future Inflation Gauge Rises

An index designed to anticipate cyclical turning points in inflation increased slightly in May after a pronounced decline in April.

At the same time, a smoothed version of the annualized growth rate rose to 1.8% in May from 1.1% in the prior month.

The Economic Cycle Research Institute said Friday that its Future Inflation Gauge edged up to 117.5 in May from an upwardly revised 117.2 in April.

April's index was originally reported as 117.1, compared to 119.1 in March...

"The U.S. future inflation gauge remains in a cyclical uptrend, well above its December 2003 low," said Lakshman Achuthan, managing director at ECRI. "Thus, U.S. inflation pressures remain elevated."

Weekly updates of the index are released only to subscribers.