Inflation Pressures Increase

New York, NY, Sept. 9--Inflationary pressures in the U.S. jumped in August, spurred in part by strong growth in real estate loans. The Economic Cycle Research Institute's Future Inflation Gauge, which is designed to anticipate cyclical swings in the rate of inflation, rose to 117.6 in August from a revised 115.6 in July, the research group said. The report said that busy property loan activity, higher factory inventories and a rise in industrial prices pushed up the index. If the gauge continues to rise, core prices should be poised for an increase, according to the report. "We shouldn't dismiss the risk of an inflation upturn in the next couple of months," ECRI managing director Lakshman Achuthan told Reuters. The ECRI report runs counter to comments concerning inflation from Federal Reserve Governor Ben Bernanke on Thursday. "As I see it, the persistence of economic slack even as growth picks up makes it likely that inflation will remain low and in some scenarios, may fall still further," he told a news panel. The index's annualized growth rate, which smoothes out monthly fluctuations, recovered somewhat to -1.0 percent in August from a revised -1.3 percent in July. The ECRI Future Inflation Gauge is a widely watched indicator of future price increases.