Goldman raises CPI forecast to 5.5% for FY17
US-based Goldman Sachs has marginally revised upwards its India CPI inflation forecast from 5.3% to 5.5% for this fiscal amid higher than expected food prices. Contracting of the output gap and declining favourable base effects may contribute to the increase in inflation, it reported. However, upside risks are limited due to delay in the Seventh Pay Commission rollout, it added.