Upcoming US Inflation Data to Heavily Influence Fed Rate Hike Outlook

Investors are closely monitoring upcoming US inflation data, particularly the Consumer Price Index (CPI) scheduled for release on Wednesday, following Friday's weaker-than-expected jobs report. Economists anticipate the annual headline CPI to have dropped to 3.4% in July from 3.5% in June, with core CPI also expected to dip to 2.5% from 2.6%. A second consecutive softer inflation reading could significantly reduce the likelihood of a September rate hike by the Federal Reserve.