Two worrisome trends for the economy — falling house prices and the rising cost of everything else — picked up speed in the latest data reported on Tuesday, putting policy makers in an increasingly tough position.

If they move too aggressively to cut interest rates and stimulate the economy, they might stoke inflation at a time when consumers are already squeezed by higher prices for food, energy, clothing and other goods. But if they chose more austere measures, the economy may weaken substantially faster.

“The Fed is now having to walk a very fine line,” said Jane Caron, chief economic strategist at Dwight Asset Management, an investment firm that specializes in bonds. “We have clearly seen an accelerating in inflation pressure in the last couple of months and the risk is that the markets are going to react negatively to aggressive easing going forward.”

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Economy, Features, Real Estate Market falling house prices, Real Estate Market, rising inflation