ATLANTA, Aug 4 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Wednesday she anticipates that monthly inflation rates will subside by the end of 2021, even as year-over-year inflation readings stay elevated due to lingering comparison effects from the coronavirus pandemic.
Yellen, speaking to reporters after a tour of a social services agency in Atlanta, repeated her view that currently high inflation is a transitory effect from supply bottlenecks and shifts in spending demand caused by the pandemic and recovery.
“Even if monthly (inflation) rates come down, we’ll see somewhat elevated year-over-year rates for some time. But my expectation is that by the end of the year, that monthly rates will come down to a pace consistent with the Fed’s interpretation of price stability,” Yellen said. (Reporting by David Lawder Editing by Chris Reese)
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