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U.S. Inflation Pressures Ease


U.S. inflation pressures eased in June...

The Economic Cycle Research Institute's U.S. Future Inflation Gauge, designed to anticipate cyclical swings in the inflation rate, fell to 122.6 in June from an upwardly revised 123.3 in May. It was originally pegged at 121.8.

"With the (gauge) declining in June, inflation pressures remain in a gradual easing trend that began after it hit a five-and-a-half-year high last October," said Lakshman Achuthan, managing director for ECRI.

The October 2005 level was 125.6 with an annualized growth rate of 9.8 percent.

"In the context of today's news on higher average hourly earnings, the continued easing of the future inflation gauge should give analysts some comfort," Achuthan said.

The index's annualized growth rate, which smoothes out monthly fluctuations, fell to 0.5 percent from an upwardly revised 2.4 percent in May. The growth rate was originally pegged at 0.2 percent.

Despite the upward revisions to the data in May, the gauge has remained in an easing trend, Achuthan said.