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HomeLaw & PoliticsRussia-Ukraine conflict may soar inflation even higher: Goldman Sachs

Russia-Ukraine conflict may soar inflation even higher: Goldman Sachs

According to Goldman Sachs economists in a new inflation report released on Sunday, inflation has been atrocious in 2022 and is unlikely to improve this year. 

“As expected, the inflation picture has worsened this winter, and how much it will recover later this year is now in question,” the financial institution explained in a note. Goldman’s note to investors follows the recent Consumer Price Index (CPI) data, which showed inflation in the United States rising at its fastest rate in 40 years, since February 1982.”

The financial institution believes that if supply chains and energy producers are disrupted as a result of Ukraine’s war with Russia, inflation might soar even higher.

Goldman Sachs analysts said that the initial inflation rise may have lasted long enough and reached a high enough peak to raise inflation expectations in a manner that feeds back into wage and price setting. According to the Goldman Sachs report, a healthy job market and rising prices could “threaten to start a moderate wage-price spiral.”

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Jeewan Singh
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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