Jittery Wall Street Awaits Inflation Data. Uncertainty Looms Over Rate Trajectory.
By B. Prem
Published 09/05/26 AT 1:35 PM EDT
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The Wall Street will be awaiting cues from key inflation-related updates this week.
On Thursday, the US will release its August the Producer Price Index (PPI) report, an indicator of inflation at the wholesale level, the Associated Press reported. The PPI report will provide details on prices for businesses before these are passed along with the costs to consumers.
A day after the US Consumer Price Index (CPI) for August would be out. The CPI is a keenly followed indicator that provides details on price changes for specific grocery items, furniture, and clothing, apart from providing details on price shifts for services ranging from car maintenance to travel and restaurant dining.
The reports will give Wall Street and the Federal Reserve a heads up on the trajectory of inflation in the US. The rate of inflation has been hovering above 3% stoking concerns among businesses and households. The pace of inflation has also left wage growth way behind, adding another layer of economic misery on households.
Rising energy prices due to the Middle East conflict have been stoking inflationary concerns across the globe, mainly due to the closure of the Strait of Hormuz. A fifth of the world’s energy cargoes passed through the contentious waterway before the conflict. Now, Iran has virtually shut it and the US has enforced a naval blockade of Iran, further fuelling a surge in oil prices. Oil had climbed to a peak of $120 a barrel briefly after the conflict escalated.