Omaha, Neb. ? As the Midwest economy rebounds it is bringing inflation with it, according to a survey of company officials released Wednesday.

The economy in a nine-state region improved for the third straight month in April, with the survey’s overall growth index reaching it’s highest level in two years, said Ernie Goss, a Creighton University economics professor who conducts the monthly survey.

The region’s economic index increased from 54 to 57.5 in April. An index of above 50 signifies economic growth, while a figure below 50 indicates a sluggish economy. Kansas’ overall index rose to 48.8, up from 43.3 in March, but was still the second lowest index in the region.

Purchasing managers and business leaders who were surveyed said their companies paid much more for materials and products last month, indicating inflation, Goss said.

The survey’s prices-paid index in April was 61.9, up from 45.2 at the end of 2001.

“Just as the new economy has not eliminated recessions, it has not eliminated inflation,” Goss said.

He said he expects the Federal Reserve to raise interest rates at its June meetings to curb inflation.

The survey’s new-jobs index rose above 50 for the first time since November 2000 with a reading of 50.2. Goss said that number still is weak. It was at 47.3 in March.

Business confidence remained strong, according to firms surveyed.