Oil Price Surge Fuels Inflation Jitters Ahead of August CPI Release

Global financial markets struggled to find direction as the U.S. Labor Day holiday closed major exchanges, including the New York Stock Exchange and the Chicago Mercantile Exchange.

The August Consumer Price Index (CPI) release on September 11 will be a key indicator of inflationary pressures in the U.S. economy, with analysts expecting a 0.4% month-over-month increase in CPI and 0.2% rise in core CPI excluding food and energy.

Oil prices surged due to Middle East tensions, with WTI and Brent crude jumping to their highest levels in six weeks. Goldman Sachs projected that international oil prices could climb to $120 per barrel if attacks targeting vessels in Middle East waters escalate.