The effects of higher oil prices on inflation will come into full focus tomorrow morning with the release of the July Consumer Price Index, with headline CPI expected to increase by 0.1% month-over-month and Core CPI expected to increase 0.2%.
The report will likely play a key role in the Fed’s next policy decision, with the CME FedWatch tool currently assigning roughly equal odds to the FOMC holding rates steady or raising them at its September meeting.
Crude oil futures settled today’s session $1.00 higher (+1.2%) at $83.17 per barrel.