Dec 11, 2022 - Economy

Yellen says inflation will be "much lower" by end of 2023

Rebecca Falconer

A screenshot of Treasury Secretary Janet Yellen on CBS News' "60 Minutes." — Treasury Secretary Janet Yellen during her "60 Minutes" interview, broadcast Sunday. Photo: CBS/"60 Minutes"

Treasury Secretary Janet Yellen expects to see a reduction in inflation in the U.S. in 2023, according to her interview with CBS' "60 Minutes" that broadcast Sunday.

What they're saying: "I believe by the end of next year, you will see much lower inflation if there's not an unanticipated shock," Yellen told CBS' Norah O'Donnell in their interview.

Asked if families should be worried about a recession in 2023, Yellen said: "There's a risk of a recession. But it certainly isn't, in my view, something that is necessary to bring inflation down."

The big picture: The Consumer Price Index is due out on Tuesday, following last week's release of another key inflation measure, the Producer Price Index, which showed PPI was up 7.4% for the 12 months ended in November. That's down from 8.1% in the year ended in October —the lowest reading since May 2021.

Core PPI, which excludes food and energy, rose 0.4%, compared to the 0.2% forecasters had expected and food prices increased by 3.3% in November.

Go deeper ... Fed chair Powell: No "clear progress" toward lower inflation

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Yellen says inflation will be "much lower" by end of 2023

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