Goldman Sachs Forecasts for US Consumer Price Pressures

Goldman Sachs recently released their forecasts for US consumer price pressures, providing some insight into what the future may hold for inflation. The Federal Reserve will be closely watching these numbers, hoping that inflation has reached its peak and will begin to stabilize.

GS Forecasts:

• We continue to believe that the peak for core PCE inflation is behind us
• We forecast core PCE inflation of 4.2% in December 2022 (vs. 4.5% previously)
• 2.6% in December 2023
• 2.3% in December 2024

Goldman Sachs cited that these forecasts were based on their “bottom-up inflation model.”

With these predictions in mind, there is a possibility that the USD could see some relief in the near future.

How Will This Affect Me?

As a consumer, these forecasts suggest that inflation may stabilize in the coming years, potentially leading to less drastic price increases for goods and services. This could result in a more stable cost of living for individuals and families.

How Will This Affect the World?

The forecasts from Goldman Sachs could have ripple effects across the global economy. A stabilization of US consumer price pressures could help ease concerns about inflation on a broader scale, leading to more balanced economic conditions worldwide.

Conclusion

In conclusion, the forecasts provided by Goldman Sachs offer some optimism for the future of US consumer price pressures. While the Federal Reserve will be closely monitoring these numbers, consumers and businesses alike can look forward to potentially more stable inflation rates in the years to come.