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On
Friday, the U.S. will release its better-known Consumer Price
Index, for August. The CPI is closely watched and provides
details on price changes for specific grocery items, furniture,
and clothing, among other categories. It also details price
changes for services ranging from car maintenance to travel and
restaurant dining.
The reports will help give Wall Street and the Federal Reserve a
clearer picture of inflation's direction. The rate of inflation
remains above 3% and is squeezing households and businesses.
Inflation is also outpacing wage growth, putting more strain on
households.
Rising energy prices because of the U.S. war with Iran have been
fueling inflation. Shipping has been stifled in the Strait of
Hormuz, through which about 20% of the world's oil supply flowed
prior to the war. That has pushed prices for gasoline and
shipped goods higher.
Ongoing tariff conflicts between the U.S. and most of the world
also threatens to send prices higher.
The Fed has been holding its benchmark interest rate steady, but
Wall Street expects it to raise the rate at least once this year
to help fight inflation. The central bank's stated goal is to
cool inflation to a rate of 2%.
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