Inflationary pressures were lower in July as the U.S. future inflation gauge fell to a near six-year low of 112.4 from a revised 114.9 in June, originally reported as 115.2, according to data released Friday by the Economic Cycle Research Institute.
The smoothed annualized growth rate, a comparison of the latest figures to the preceding year’s average level, widened to negative 7.6% from negative 4.4%.
The July decrease was driven by disinflationary moves in measures of labor market conditions, loans, interest rates, and commodity prices, ECRI said.
“With the USFIG falling to a new 71-month low, underlying inflationary pressures are in a decisive cyclical downswing,” the institute said in a release.
