Goldman Sachs Ups Rate Hike Odds to 90% as Inflation Data Surges

Goldman Sachs has revised its forecast for this week's Federal Reserve meeting, now predicting a 25-basis-point rate increase. The change comes after stronger-than-expected inflation data and a surge in oil prices.

The August CPI report showed a 0.4% monthly rise in headline inflation and a 3.4% annual increase. Core inflation also rose 0.3% on the month, beating expectations.

Market analysts now assign around a 90% probability to a quarter-point hike at the September 15-16 meeting, according to Goldman Sachs.