Goldman Sachs Says August CPI Inflation Is Heating Up: Tariffs, Travel, Used Cars Behind The Surge

Goldman Sachs analysts predict a notable rise in August's Consumer Price Index (CPI) inflation, driven by increased costs in travel, energy, and tariffs. They project a 0.37% increase in headline CPI, slightly above the consensus of 0.3%, with a year-over-year rate of 2.9%. Core CPI is also expected to exceed estimates. Key inflation drivers include rising used car prices, airline ticket costs, and tariffs affecting various industries. Despite manageable inflation due to wage growth, concerns arise over potential layoffs and hiring slowdowns. Additionally, experts warn that upcoming Federal Reserve rate cuts could trigger an asset bubble and harm the labor market.