Inflation expected to rise due to tariffs impacting prices, potentially leading to higher core inflation
From Yahoo Finance: 2025-05-13 21:07:00
Inflation in April was cooler than expected, but forecasters warn tariffs will soon impact prices. Top analysts predict effects of the trade war could be seen as soon as next month. Consumer price index dipped last month, but experts anticipate a fresh spike in prices due to tariffs. Real US imports surged over the first quarter, hinting at potential inflation increase. Goldman Sachs forecasts core inflation to rise from 2.6% to 3.6% by year-end, with tariffs impacting electronics, autos, and apparel. Economists warn tariffs could lead to higher inflation as companies pass on costs to consumers. The average effective US tariff rate could reach 17%, the highest in over 80 years, according to the Yale Budget Lab.