US Inflation Data May Seal Fed Rate Hike

The US central bank's first interest rate hike in more than three years may be on the horizon due to rising inflation, analysts say.

A consumer price index (CPI) report scheduled for release on Friday is expected to show a steady or higher inflation figure, which could nudge the Federal Reserve toward raising interest rates next week. This move would be a departure from President Donald Trump's calls for rate cuts as he faces pressure from voters concerned about the cost of living ahead of the midterm elections.

Economists predict consumer inflation to come in at 3.4 percent year-on-year in August, exceeding the Fed's 2 percent target. This would be the same rate as in July and follows a surge in global energy prices since US-Israeli strikes targeting Iran in late February.