Goldman Sachs forecasts inflation growth in the US due to tariffs
AI Summary
According to Odaily, economists at Goldman Sachs indicated that tariffs could lead to price increases for US goods and overall inflation in the coming months. They expect a moderate impact on the Consumer Price Index (CPI) data for May, which is set to be published on Wednesday. The increase in goods prices could raise core inflation by 0.05 percentage points, resulting in a 0.25% increase in core CPI compared to the previous month. However, Goldman Sachs predicts that core CPI inflation could reach 3.5% by the end of the year, up from 2.8% in April. This increase is expected despite a decrease in inflationary pressure in the labor market, housing rent, and the automotive sector. The company also forecasts that hotel and airline ticket prices will remain stable in May, reflecting a slowdown in consumer spending. "Our forecast indicates significant acceleration in inflation across most categories of core goods, with limited impact on core services inflation, at least in the short term."