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U.S. Future Inflation Gauge Slips

U.S. inflation pressures fell in June to a two-year low... a report said on Friday.

The Economic Cycle Research Institute's U.S. Future Inflation Gauge, designed to anticipate cyclical swings in the rate of inflation, fell to 117.8 from 118.5 in May, revised up from 118.2. The previous low was 117.5 in June 2005.

"Although U.S. economic growth is firming, as evidenced by today's jobs report, the U.S. FIG remains in a cyclical downswing, showing that underlying inflation pressures are still ebbing," said ECRI managing director Lakshman Achuthan.

The index's fall was partly offset by an inflationary move in a measure of commodity prices, the report said.

The FIG's annualized growth rate, which smooths out monthly fluctuations, dropped to minus 4.2 percent in June from minus 3.5 percent in May, revised from negative 3.8.