Inflation pressures lowest since August 1958

NEW YORK (Reuters) - Inflation pressures fell in December to a 50-year low, indicating policy-makers should focus on economic growth, a research group said on Friday.

The Economic Cycle Research Institute's U.S. Future Inflation Gauge (USFIG), designed to anticipate cyclical swings in the rate of inflation, slipped to 85.5 in December from 86.7 in November.

The reading was the lowest since August 1958, when it stood at 85.3.

"It is notable that the USFIG was in a clear, cyclical downswing in mid-2008, when financial markets and monetary policy-makers alike were mistakenly concerned about the threat of inflation," said Lakshman Achuthan, managing director at ECRI, adding:

"With the USFIG now sliding to a half-century low, U.S. inflation pressures are in full retreat."

The gauge was pulled down by disinflationary moves in commodity prices and job growth, which were partly offset by inflationary moves in interest rates, Achuthan said.

The USFIG annualized growth rate, which smooths out monthly fluctuations, rose in December to minus 36.5 percent from minus 37.7 percent in November.

(Reporting by Ciara Linnane; Editing by James Dalgleish)