Goldman Sachs: Tariffs to have a moderate impact on May CPI, with core CPI inflation potentially reaching 3.5% by year-end

BlockBeats News: On June 10, Goldman Sachs economists indicated that tariffs could drive up U.S. goods prices and overall inflation in the coming months. They predict that tariffs will have a moderate impact on the May CPI data, set to be released on Wednesday. Rising goods prices may increase the core inflation rate by 0.05 percentage points, causing the overall core CPI inflation rate to rise by 0.25% month-over-month.

However, Goldman forecasts that by the end of this year, the core CPI inflation rate could reach 3.5%, up from 2.8% in April. This increase is expected despite easing inflationary pressures in the labor market, housing rentals, and the automotive industry. Hotel prices and airfare prices are expected to remain flat in May, reflecting a slowdown in the consumer economy. “Our projection reflects a significant acceleration in inflation across most core goods categories, but with limited impact on core services inflation, at least in the short term,” said the economists. (Jin10)