ECRI's January 2007 FIG or

Posted by Kirk Lindstrom Feb 2, 2007

ECRI announced the latest inflation numbers today. Their January 2007 US FIG fell to 119.5 and its growth rate fell to minus 2.1%.

ECRI is the Economic Cycle Research Institute, founded by Geoffrey H. Moore.

ECRI's U.S. FIG, short for Future Inflation Gauge, is designed to anticipate cyclical swings in the rate of inflation in the United States.

In their press release, ECRI wrote:

• U.S. inflation pressures fell in January due mainly to disinflationary moves in measures of jobs, home loans, interest rates and vendor performance.
• ECRI's proprietary US FIG index fell to 119.5 in January from 120.1 in December, revised up from 119.6.
• The index's annualized growth rate, which smoothes out monthly fluctuations, dropped to minus 2.8 percent from an upwardly revised minus 2.1 percent in December.

Quote: "The USFIG remains in a cyclical downswing that began in the fall of 2005. Thus, U.S. inflation pressures continue to ebb, even as economic growth prospects improve further," said Lakshman Achuthan, managing director at ECRI.

Discuss & Ask Questions of Lakshman

Discuss and ask questions about ECRI's FIG, WLI and other economic terms in our ECRI Data & Forecast discussion forum where Lakshman kindly answers questions about their excellent indexes and how they relate to the economy.

Read their book

"Beating the Business Cycle: How to Predict & Profit from Turning Points in the Economy" by Lakshman Achuthan and Anirvan Banerji

Definitions:

• WLI is Weekly Leading Index
• FIG is Future Inflation Gauge
• ECRI is Economic Cycle Research Institute
• ECRI website: http://www.businesscycle.com

Kirk Lindstrom:

DISCLAIMER: Answers & my words are general in nature, are not meant as specific investment advice, and do not necessarily represent the opinion of anyone but Kirk. Individuals should consult with their own advisors for specific investment advice.