US inflation pressure rises in August: ECRI

05 Sep, 2010

A monthly measure of potential US future inflation rose in August but continued to signal muted pressure, a research group said on Friday. The Economic Cycle Research Institute's US Future Inflation Gauge (USFIG), designed to anticipate cyclical swings in the rate of inflation, rose to 96.7 in August from 95.2 in July, originally reported at 96.1.
"Thus, US inflation pressures remain subdued, but are not indicating deflation danger at this time," ECRI Managing Director Lakshman Achuthan said in a statement. The USFIG annualised growth rate, which smoothes out monthly fluctuations, rose to 0.2 percent from minus 1.0 percent, originally reported as 0.8 percent. The reading was pulled higher by inflationary moves in all components apart from one related to the industrial sector, said Achuthan.

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