Investing.com -- Goldman Sachs raised its Brent crude oil price forecast to $85 per barrel for December as energy prices increased over the past several weeks across Asia-Pacific markets.
The bank's commodities strategists adjusted their outlook as energy prices moved higher, which is expected to be reflected in import prices and producer prices in September across many economies in the region. Consumer prices will see smaller increases due to fiscal subsidies and regulated prices in many countries.
Refined product prices remained elevated despite oil prices not returning to March peak levels. LNG and diesel prices reached new highs for the year.
Before the Iran war, CPI inflation was generally at or below central bank targets in most countries across the region. Currently, headline and core CPI inflation are at or above target levels in most economies.
CPI inflation forecasts across the Asia-Pacific region moved higher following the onset of the Iran war and the closure of the Strait of Hormuz, which reduced energy supply to Asia. Goldman Sachs forecasts are aligned with consensus estimates for 2026 but differ for 2027 in several economies. The bank's projections are most above consensus in India and Malaysia, and furthest below in Japan, Vietnam and the Philippines.
Pass-through to core CPI inflation has been limited so far. At the regional level, median core inflation has increased only slightly. Wage inflation rates vary among regional economies but have been stable in developed markets and increased in some emerging markets.
The latest CPI and PPI data points are generally for August 2026, with some energy price data extending through mid-September.