Rising Oil Prices Fuel Inflation Worries Ahead of Fed Meeting

Oil prices continue to rise, weighing on Wall Street as investors worry about high inflation. The price of Brent crude oil has jumped from around $72 in early July to $97.54 after briefly reaching $99.46. This increase is due to increased fighting in the Middle East, which has constricted the global flow of oil.

The higher oil prices have exacerbated concerns about inflation, which economists expect will accelerate to 5.4 percent from 4.7 percent in July according to the wholesale level report on Thursday. The more closely watched consumer price index (CPI) report is expected to show a slight easing to 3.3 percent from July's 3.4 percent.

The Federal Reserve is scheduled to meet next week to decide whether to cut, raise or hold interest rates steady. Traditionally, the Fed raises interest rates when inflation is high to slow down the economy and curb prices. However, President Donald Trump has been lobbying for lower interest rates, which could give the economy an extra boost.