Major investment firm Goldman Sachs has recently announced that it anticipates even higher inflation across the United States in the near-future, in spite of the fact that inflation is currently presenting crippling costs for consumers.
In a recently released report, economists at Goldman Sachs concluded that the core personal consumption price index in the United States will increase to 4.3 percent before the end of the year. This increase foreshadows even higher prices for gasoline and other consumer goods, and it will also increase overall levels of inflation across the nation.
In the United States, inflation is expected to skyrocket to 7 percent in December, representing a 6.2 percent increase over the past month. In addition, economists also noting that persistent issues in the supply chain, coupled with insufficient improvements in the labor market, will continue contributing to elevated inflation for the foreseeable future.
According to Jan Hatzuis, who serves as a Chief Economist for Goldman Sachs, the present “inflation surge” will worsen during the winter before it improves, which does not bode well for numerous American families.
“We do expect persistent inflationary pressure from faster growth of wages and rents,” Hatzuis continued, though she added that these pressures were “only enough to keep inflation moderately about 2 percent,” which aligns with the Federal Reserve’s “goal under its new framework.”
— Goldman Sachs (@GoldmanSachs) November 15, 2021
Hatzuis also argued that one of the most important drivers of inflation includes “labor issues,” adding that another important driver arises from “what [the nation is] seeing just in terms of goods demand and good inflation.”
“I think [inflation] is going to spill more into 2022,” Hatzuis declared, citing remarks from Federal Reserve Chair Jerome Powell during a Wednesday press conference.
While Goldman Sachs anticipates for inflation to gradually begin easing by the middle of next year, it will likely remain higher than its decade average until the end of 2022.