A Goldman Sachs analysis suggests that U.S. core personal consumption expenditures will halve by the end of 2022.
"The current inflation surge will get worse this winter before it gets better. We do expect persistent inflationary pressure from faster growth of wages and rents, but only enough to keep inflation moderately above 2%, in line with the Fed's goal under its new framework," said Jan Hatzuis, Goldman's chief economist, according to Reuters.
In the 12 months through September, the core PCE price index increased 3.6% for a fourth consecutive month.
Last week, the U.S. dollar rose to a 16-month high, touching 95.197 as data showed inflation in the U.S. grew at its fastest pace since 1990.