PANews May 8 news, according to CNN, Goldman Sachs warned that Trump's global trade war may make most of the progress made in the fight against inflation go to waste. The Wall Street bank told clients in a report on Wednesday that key inflation indicators are expected to soar in the coming months due to the harmful combination of high tariffs and a weaker dollar. Goldman Sachs currently expects the annual rate of core inflation (excluding food and energy) to accelerate from 2.6% in March to 3.8% in December. This is based on the PCE price index favored by the Federal Reserve. Goldman Sachs believes that the rise in prices is much greater than the Fed's forecast in March, when the United States had not yet announced the largest tariffs. The Fed expects the core PCE inflation rate to be 2.8% in December. Worse, Goldman Sachs expects the annual rate of core commodity inflation to soar from 0.4% in March to 6.3% in December. By December, prices will rise sharply for used cars (+8.3%), household appliances (+7.8%), video/audio/computers (+7.7%), jewelry/watches (+5.9%) and pharmaceuticals/medical (+7.8%).
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