On top of that, inflation has already crept higher than Mr. Bernanke's stated comfort zone for price stability.

More Signs of Inflation A spurt in consumer prices last month, following a surge in producer prices, increased concerns that inflation may be creeping back.

They added up to an overall economic picture that still shows an economy growing at a strong pace but not so fast that inflation could creep substantially higher.

But he said Japanese investors were still wary of long-term United States bonds because "they fear that inflation may be creeping up."

The report added to concerns that inflation may be creeping back; the index has been rising at a 4.3 percent annual rate so far this year, well above the rate in 1992.

But economists, including some leading bond investors, predict that inflation will creep higher even if oil prices stop climbing.

He acknowledges that inflation by many measures is indeed creeping higher, but he calls it a traditionally lagging indicator that will soon retreat.

The economy is still strong, and inflation is slowly but inexorably creeping upward.

But government spending and inflation have crept steadily higher, causing concern among foreign investors, who have called for painful economic reforms.

A spurt in consumer prices last month, coming right after a surge in producer prices, increased concerns that inflation may indeed be creeping back, even though economic growth remains modest.