Here is one big inflation risk not many people are thinking about

The inflationary pressures starting to grip a U.S. economy awakening from its COVID-19 pandemic slumber could have an unfortunate consequence that may weigh on economic growth, warns Goldman Sachs Chief Economist Jan Hatzius.

"Big increases of inflation expectations can give inflation pickups more staying power — that's a possibility," said Hatzius on Yahoo Finance Live. Hatzius notes that the increasing worker shortage in part caused by the extended unemployment top up and the auto shortage fueled by low semiconductor supplies are two components driving upside risks to inflation.

On Monday, Hatzius took a more formal crack at conveying his near-term concern on inflation.

Goldman's economic team led by Hatzius boosted its Consumer Price Index (CPI) forecasts "significantly further." Hatzius sees CPI increasing by 3.6% year-over-year in June, helping to drive full-year CPI to a 3.5% gain. CPI is forecast to increase 2.7% in 2022, per Goldman's estimates.

Relative to Goldman's forecasts in early May, its revised figures reflect increases of up to 125 basis points for this year and 33 basis points for 2022.