Upcoming inflation data could determine if the Federal Reserve hikes interest rates soon, leaving Wall Street on edge

Wall Street will receive key updates on inflation this week, with the U.S. set to release its August Producer Price Index on Thursday and the more famous Consumer Price Index on Friday. These reports will provide crucial insights into the direction of inflation for Wall Street and the Federal Reserve. Presently, inflation exceeds 3%, straining both households and businesses, as it outpaces wage growth.

Tensions stemming from the U.S. war with Iran, blockages in the Strait of Hormuz, and escalating tariff disputes have contributed to soaring energy prices and shipping costs. Despite keeping the benchmark interest rate unchanged, the Federal Reserve anticipates raising it at least once in 2022 to combat inflation, which the central bank aims to bring down to the 2% target.