Goldman Sachs: Tariffs may push up US inflation

Odaily Planet Daily News: Goldman Sachs economists have written that tariffs may push up US commodity prices and overall inflation in the coming months. They expect the tariffs to have a moderate impact on the May CPI data released on Wednesday. The increase in commodity prices may cause the core inflation rate to rise by 0.05 percentage points, resulting in a 0.25% month on month increase in the overall core CPI inflation rate. But Goldman Sachs predicts that by the end of this year, the core CPI inflation rate may reach 3.5%, higher than the 2.8% in April. Goldman Sachs expects that although inflationary pressures in the labor market, housing rental, and automotive industries have decreased, this increase will still occur. Goldman Sachs predicts that hotel and airline prices will remain stable in May, reflecting a slowdown in the consumer economy. Our forecast reflects that inflation in most core commodity categories will accelerate significantly, but the impact on core service inflation will be limited, at least in the short term