US Treasury Secretary Janet Yellen said that by the end of this year, the month-on-month price increase will be in line with the Federal Reserve's target, even if the year-on-year increase continues to show an unsettling level of high inflation.

After attending several meetings and events in Atlanta on Wednesday, Yellen told reporters that the year-on-year price increase will remain high “for some time,” but “I expect that by the end of this year, the month-on-month increase will fall to a level consistent with the Fed's explanation of price stability.”

The Federal Reserve's inflation target is an average increase of 2% in the Ministry of Commerce's personal consumption expenditure price index over a period of time. The index rose 4% year on year in June, the fastest growth rate since 2008.

Yellen reiterated the Biden administration's view that the surge in inflation reflects economic bottlenecks and challenges associated with reopening. “I believe this is temporary and inflation will fall back to normal levels not too far in the future.”