U.S. inflation pressures fell in October to an 81-month low, indicating policymakers should focus on economic growth, a research group said on Friday, TehranTimes reported.
The Economic Cycle Research Institute's U.S. Future Inflation Gauge (USFIG), designed to anticipate cyclical swings in the rate of inflation, slipped to 95.5 in October from 103.5 in September, revised from 103.7.
The reading was the lowest since January 2002, when it stood at 95.4. It was also the biggest one-month drop in 28 years -- the last time the index fell this sharply was April to May of 1980, when it went from 123.0 to 110.8.
"With the USFIG plunging to its lowest reading in nearly seven years, U.S. inflation pressures are being eviscerated," said Lakshman Achuthan, managing director at ECRI.
The gauge was pulled down by disinflationary moves in all available components, Achuthan said.
The USFIG annualized growth rate, which smooths out monthly fluctuations, fell in October to minus 28.1 percent from minus 18.2 percent in September, revised down from negative 17.8 percent.