US inflation spike not expected to last: Bernanke

Federal Reserve chairman Ben Bernanke expects the recent increase in US inflation, which, he says, is due mostly to increasing commodity prices globally, not to persist.

The comments come in sharp contrast to the pronouncements of a number of US central bank officials, some of whom have argued that the time had come for the Fed to tighten monetary policy.

On Monday, Atlanta Fed president Dennis Lockhart made similar statements, saying inflation would probably remain moderate.

On the same lines, Bernanke has argued that supply and demand factors were driving energy and commodity costs higher. However, these would eventually stabilise, allowing the US to avoid any inflation troubles.

"I think the increase in inflation will be transitory," Bernanke said in response to questions after a speech. "Our expectation at this point is that in the medium term inflation, if anything, will be a bit low. We will monitor inflation and inflation expectations very closely."

According to analysts, the comments point to the Fed chief committing to the completion of a $600 billion stimulus programme as scheduled in June, despite calls from some of his colleagues to consider scaling down the effort in view of the improving economy.