The secretary of Treasure United States, Janet Yellenwarned that the decline in inflation It may not be “gentle”but he hoped that rents, one of the biggest contributors to rising prices, would fall throughout the year.
“I wouldn’t expect this to be an easy path month to month, but the trend is clearly favorable. That said, the president’s top priority (Joe)Biden is to address the issue of high costs, which worries so many Americans”he noted in an interview on the Fox News network.
The US consumer price index (CPI) rose to 3.2% in February at an interannual level, while compared to the previous month it increased by 0.4%, above what analysts expected and very far from the target of the 2% marked by the Federal Reserve.
Yellen, however, ruled out stagflation, the possibility of economic stagnation occurring at the same time as a sharp rise in prices.
Most forecasters, in their opinion, believe that it is “on a path in which inflation will decrease over time.”
In February, most of the rise, the 60%was attributed to rising housing and gasoline prices, and the energy price index grew by 23% compared to January, while that of food remained almost unchanged, according to the Bureau of Labor Statistics (BLS, in English).
“I have every expectation that the factor that contributes the most to inflation will decrease during this year,” he said in reference to the cost of rental housing, and the expectation that as tenants sign contracts with lower rents this will be reflected in the final inflation data.
Yellen regretted having said in the past that the price increase was going to be temporary: “It’s gone down, but I think for most people it’s transitory for a few weeks or months.””, he concluded.
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Source: Gestion
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