Goldman Sachs raises US inflation forecast, cuts growth outlook on oil shock

Goldman Sachs has raised its U.S. inflation forecasts and lowered its 2026 growth outlook, warning that rising oil prices linked to the conflict in Iran pose a major economic risk. The bank increased its year-end 2026 forecast for the Personal Consumption Expenditures (PCE) price index to 2.9% and for core PCE to 2.4%, while cutting its GDP growth projection to 2.2%.