US Inflation Data to Decide Fed Rate Hike Fate This Week

Investors are eagerly awaiting US inflation data set to be released this week, as it will play a crucial role in determining whether the Federal Reserve raises interest rates at its September policy meeting.

The Bureau of Labor Statistics is expected to report that headline consumer inflation rose 3.4% year over year in August, unchanged from July, according to economists polled by Reuters.

Core CPI, which excludes volatile food and energy prices, is expected to have eased to 2.4% from 2.5%, indicating a moderation in underlying price pressures.

Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions, said the upcoming release could prove unusually important, stating that 'what really matters is whether that print really confirms the cooling that we saw in June and July.'