US Treasury’s Yellen: inflation will continue to ease over time

RENT and housing costs are keeping US inflation higher than preferred but consumer prices will continue to come down over time as inflationary factors including supply issues and labour market tightness have eased, Treasury Secretary Janet Yellen told US lawmakers on Tuesday (Jul 9).

“I believe that it (inflation) will continue to come down over time. Rents and housing costs continue to leave it higher than we would ideally like,” Yellen told the US House panel on financial services.

“Although the labour market was initially very tight, now we have a strong labour market, but one with fewer pressures that would create inflationary concern, so inflation is coming down,” she said. REUTERS