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Consumer Prices Set to Rise: Banks Warn Two-Thirds of Tariff Costs Will Hit Shoppers

Consumer Prices Set to Rise: Banks Warn Two-Thirds of Tariff Costs Will Hit Shoppers

Despite a cooler-than-expected Consumer Price Index report, major Wall Street economists agree that higher inflation is coming due to tariffs.

Goldman Sachs, UBS, and JPMorgan Chase predict that tariffs will push up consumer prices, with Goldman estimating consumers will bear about two-thirds of tariff costs by fall.

President Trump criticized Goldman Sachs for this prediction, even suggesting CEO David Solomon should “focus on being a DJ” instead. JPMorgan’s chief economist estimates tariffs could add 1-1.5% to inflation, with some impact already visible.

Eight more from the desk

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