Treasury Secretary Janet Yellen said on Sunday that she expects higher inflation to linger for months, then ease by “the middle to end of next year.”
“The Covid shock to the economy has caused disruptions that we’ll be working through over the next year. And, of course, Americans have not seen inflation like we have experienced recently in a long time,” Yellen said on CNN’s “State of the Union.” “As we get back to normal, expect that to end.”
The most recent Consumer Price Index showed prices have gone up 5.4 percent in the past 12 months. Yellen also cited supply chain issues and worker shortages as a result of Covid-19 that has hampered the economy.