Janet Yellen Says Inflation Has Been ‘Quite Moderate, Quite Low For The Last Six Months’

Treasury Secretary Janet Yellen Friday’s statement was that Inflationary Pressures were “moderate” And “low” Over the past few months.

Prices fell slightly in December due to an increase in energy prices. The year-overyear change in inflation was 7.1% in November and 6.5% in 2012. This represents the largest decline in three years, while shelter and food prices continue to rise, according to a report by a Report Source: Bureau of Labor Statistics. While energy prices fell 4.5%, food prices rose 0.3% and shelter prices rose 0.8%.

Yellen remarked during an Interview NPR will show you how to inflate “has really been quite moderate, quite low for the last six months or so” Even though prices rise, they remain well above the 2% annual rate that was seen before the lockdown-induced depression.

“We continue to see improvement in supply chains,” She told the outlet. “Goods prices have actually been falling, and some of the supply chain issues that pushed up the prices of goods and commodities have really turned around. Rent indexes continue to rise. But really, we see those coming down substantially over the next six months or so.”

Yellen was criticized over the past two year for downplaying economic impact of record inflation. She The term will expire at the end 2021. “transitory” This was not a reliable indicator for rising prices. admitted She was born in 2022, during the summer. “wrong then about the path that inflation would take,” Recognizing that “there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly.”

Federal Reserve Officials Ratios increased On four occasions in a row last year, the rate was up by three-quarters to a percentage point. Then last month, the central bank implemented a half-percentage increase. This has led to higher interest rates throughout the economy as policymakers try to lower inflation. Yellen stated that she believes in central bankers. “make the best judgments that they can about what’s necessary to accomplish their dual mandate, which is to bring inflation down and to try to maintain a strong labor market.”

Also, President Joe Biden Celebrate According to the most recent price-level report, the headline numbers are lower. “more proof that my economic plan is working.”

“Even though inflation is high in major economies around the world, it is coming down in America month after month, giving families some real breathing room.  And the big reason is falling gas prices,” He said so. “As inflation is coming down, take-home pay for workers is going up. Workers’ wages are higher now than they were seven months ago, adjusted for inflation. Wages for lower-income and middle-income workers have gone up even more.”

However, price level increases continue to exceed increases in nominal wages. As of last month, the real average hourly earning fell 1.7% over the previous year according to Data According to the Bureau of Labor Statistics, this indicates lower household purchasing power.

Inflation data for the latest quarter are available after one of these worst stock market Modern history has seen some of its worst performances since 2008 when the economy was stricken by high prices, geopolitical tensions and backlogs in supply chains. The S&P 500 index plunged nearly 20% in 2022. This compares to the 37% fall in 2008 after the collapse in the banking system and the 12%, 22% and 22% falls that occurred in 2001 and 2002 respectively, during the dot.com bubble.