Goldman Sachs economists have issued a warning about potential inflationary pressures stemming from recent tariffs. They predict that these tariffs may lead to increased prices for U.S. goods and a subsequent rise in overall inflation, particularly impacting the Consumer Price Index (CPI). The firm anticipates a moderate impact on CPI data for May, which is scheduled to be released this Wednesday. This increase in goods prices could contribute to an uptick in the core inflation rate by 0.05 percentage points, resulting in a 0.25% month-on-month rise in overall core CPI inflation. While core services inflation is expected to remain relatively stable, Goldman Sachs forecasts that the core CPI inflation rate may reach 3.5% at year-end. This projection contrasts with April’s 2.8% figure. They also predict that hotel and airfare prices will remain relatively steady in May due to slower consumer spending. Their forecast indicates a significant acceleration of price increases for many goods categories, but limited impact on core services inflation, at least in the short term.