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Excerpt:
Goldman Sachs is taking the heat for its call that heavier tariff-induced consumer inflation is ahead, but it’s far from alone in that view among its Wall Street brethren.
Despite investors’ embrace of Tuesday’s fairly benign consumer price index report, economists expect that the biggest impact to inflation is yet to come.
With pre-tariff inventories rolling off, effective tariff rates climbing higher and companies less willing to absorb higher costs from the duties, the general feeling is that consumers are increasingly going to feel the bite through the rest of the year.