Goldman Sachs Boosts Brent Oil Forecast to $85 a Barrel

Goldman Sachs has raised its forecast for Brent oil prices to $85 per barrel in December, citing increased energy costs across Asia-Pacific markets. The bank's commodities strategists adjusted their outlook as energy prices rose higher, affecting import and producer prices in several economies.

The latest data shows that refined product prices remain elevated despite oil prices not returning to March peak levels. Diesel prices have reached new highs for the year, while consumer prices are expected to see smaller increases due to fiscal subsidies and regulated prices in many countries.

Before the Iran war, CPI inflation was generally at or below central bank targets in most countries across the region. However, with the onset of the war and closure of the Strait of Hormuz, headline and core CPI inflation are now at or above target levels in most economies.