US Inflation Report Could Spark First Interest Rate Hike in Over Three Years

The US is bracing for its latest inflation report, which could push the Federal Reserve to raise interest rates for the first time in over three years.

The Labor Department's consumer price index (CPI) report on Friday will provide crucial data on how rising costs are filtering through the world's largest economy.

Economists expect a steady or higher inflation figure, particularly when volatile components are excluded, to nudge policymakers towards raising short-term interest rates as they meet next week.

Navy Federal Credit Union chief economist Heather Long believes that Friday's report 'will seal the deal for a Fed rate hike in September' if the data comes in line with expectations or higher.