US: Inflation will begin to abate by end-2021 – Goldman Sachs

Analysts at Goldman Sachs expect the US inflation rates to drop by year-end, as they raise their near-term inflation forecasts.

Key quotes

“Our economists recently raised their near-term inflation forecasts while maintaining their expectation that inflation will begin to abate later in the year. “

“In April, both core PCE (+3.1% y/y) and core CPI (+3.0% y/y) exceeded expectations and notched highs not seen in more than two decades. “

“Our economists that core PCE will register 2.5% at the end of 2021 and decline to 2.1% during 2022.” 

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