Futures Point Higher Ahead of July Inflation Data

U.S. futures are pointing higher ahead of the release of key inflation data for July, which could provide more insight into price trends.

The Federal Reserve and investors are closely watching rising costs, as well as Republicans facing tough midterm elections and millions of Americans struggling with higher prices for everyday items like groceries and gasoline.

Economists expect new data to show that inflation slipped to 3.4% in July from 3.5% in June, which could relieve pressure on the Fed to raise interest rates.

Higher rates could curb inflation but also drag on the overall U.S. economy by making borrowing more expensive for households and businesses, as well as undercutting stock prices and other investments.