Fed's Collins: Rates need to rise soon absent evidence of ongoing drop in inflation

WASHINGTON, Aug. 25 (Reuters) - The U.S. Federal Reserve will need to raise interest rates soon unless coming data show a continued decline in inflation that remains too high and which has become a "pervasive" concern for businesses and households, Boston Fed President Susan Collins said on Tuesday.

In comments posted to the Boston Fed website, Collins said the current policy rate in her base case outlook will continue to push down prices, but "should evidence of sustained inflation progress not materialize, I believe it will be appropriate to tighten policy soon to ensure we deliver price stability in a reasonable time frame...Concerns about high prices are pervasive in my conversations with stakeholders across New England."

(Reporting by Howard Schneider; Editing by Chizu Nomiyama)