US Inflation Report to Push Fed Towards Rate Hike

A hot consumer inflation report due out on Friday is expected to nudge the Federal Reserve towards hiking interest rates for the first time in over three years.

The data, which measures the cost of living for American consumers, is seen as a key indicator for the Fed's decision-making process.

Economists predict that consumer inflation will come in at 3.4 percent year-on-year in August, matching July's rate but still above the central bank's target of 2.0 percent.

This uptick in inflation, coupled with rising energy costs due to the ongoing war between Iran and the US-Israel alliance, has led some analysts to believe that a rate hike is imminent.