"So much inflation" that : inflation gauge moved to negative 5.1% ....................................
ECRI US Inflation Gauge Resumes Fall In August
Fri, Sep 7 2007, 13:40 GMT
ECRI US Inflation Gauge Resumes Fall In August
NEW YORK (Dow Jones)--An index designed to anticipate cyclical turning points in inflation fell off sharply in August and is well below the peak reached in October 2005.
At the same time, a smoothed version of the annualized growth rate also was sharply negative in August, moving to a negative reading of 5.1% from an upward-revised negative reading of 1.4% in July. Originally, the July reading was reported as down 1.7%.
The Economic Cycle Research Institute said Friday that its Future Inflation Gauge fell to 116.8 in August from an upward-revised 119.5 in July, which was originally reported as 119.3.
The gauge was pulled down in August by disinflationary moves in measures of jobs, loans, commodity prices, vendor performance and interest rates.
"With the U.S. future inflation gauge at a 27-month low, underlying inflation pressures continue to ebb," said Lakshman Achuthan, managing director at ECRI.
Weekly updates of the index are released only to subscribers.
-By John McAuley, Dow Jones Newswires; 201-938-4425; john.mcauley@dowjones.com
(END) Dow Jones Newswires
September 07, 2007 09:40 ET (13:40 GMT)
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