US Inflation Data Set to Decide Fed Interest Rate Fate

Investors are closely watching US inflation data due this week, particularly the August consumer price index report.

The report is expected to play a crucial role in determining whether the Federal Reserve raises interest rates at its September policy meeting.

Economists polled by Reuters forecast that headline consumer inflation will rise 3.4% year over year in August, unchanged from July, while core CPI is expected to have eased to 2.4% from 2.5%.

The figures will be closely watched after a stronger-than-expected August jobs report revived expectations for tighter monetary policy.