WASHINGTON (AFP)- Snarls in transportation and supply chains have led to rising prices and shortages of some goods, but US Treasury Secretary Janet Yellen on Tuesday (Oct 12) urged Americans not to panic.
Price increases are not likely to last, and there should be plenty of products available for the holiday shopping season, she said in an interview with CBS News.
“I believe it’s transitory,” Dr Yellen said about the recent run-up in prices.
“But I don’t mean to suggest that these pressures will disappear in the next month or two. This is an unprecedented shock to the global economy.”
Markets on Wednesday will be watching for the latest government inflation report for September, after consumer prices hit an annual rate of 5.3 per cent in August.
Policymakers, including at the Federal Reserve, have said they expect inflation to ease, but a recent spike in oil prices to multi-year highs above US$80 a barrel has further fuelled worries that the…