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TOKYO, July 20 (Reuters) The dollar inched down on Thursday after Federal Reserve Chairman Ben Bernanke said inflation would likely ease in coming quarters, cooling expectations that the central bank would bump up interest rates again in August.

The U.S. currency had surged to fresh three-month highs against the yen, euro and Swiss franc on Wednesday on a higher-than-expected rise in U.S. consumer prices, but it spiked down after Bernanke's comments before the Senate Banking Committee.

The dollar had been buoyed leading up to the inflation data and the Fed chief's testimony by expectations the Fed would boost rates for an 18th straight time to 5.5 percent at next month's policy meeting.

''Bernanke's comments were a little different from what the market had been expecting,'' said Nobuo Ibaraki, forex manager at Nomura Trust and Banking. ''But a clear message about the Fed's future action hasn't been sent yet.'' Some traders don't expect the dollar to be sold off aggressively during Tokyo trade ahead of a second round of congressional testimony from Bernanke later in the day.

In early Tokyo trade, the dollar inched down to 116.80 yen off the three-month high of 117.88 yen struck soon after data showed core consumer prices rose 0.3 percent in June, above economists' forecast for an increase of 0.2 percent.

The euro edged up to $1.2595 It rose 0.7 percent on Wednesday after hitting a three-month low of $1.2456.

The single European currency was little changed at 147.15 yen in sight of the record high of 147.42 yen marked at the start of the month.

Bernanke said he expects core inflation, which excludes food and energy costs, to fall in coming quarters as the economy slows.

Echoing that sentiment, Kansas City Fed President Thomas Hoenig said in separate remarks on Wednesday that inflation would taper off in the long run.

Reuters YA GC0725