Goldman Sachs says it expects US core inflation to drop to 4% by year end

Goldman Sachs is now forecasting a decent drop for inflation ahead in the US, with core PCE inflation to fall from 5.2% to 4.0% by end-2022.

GS say the drop back will be driven completely by falls in the contribution from goods categories. GS do caveat this with the warning on supply chain disruption:

• "Further supply problems could hinder this"