This week is set to bring an update on inflation that could sway the stance of the nation’s central bank. After a hotter-than-expected jobs report Friday suggested the economy could be stronger than anticipated, this week’s report on the Consumer Price Index in August may matter more in the Federal Reserve’s deliberations on whether to raise interest rates later this month.
Recent escalation in the U.S. -Iran conflict and supply disruptions that have fueled higher energy costs could show up at the pump and elsewhere, as businesses pass those costs on to consumers. Average U.S. gas prices set a record for the month of August and were on track to hit a high over Labor Day weekend, according to AAA, a group representing motorists. The rise in fuel prices appears to be influencing shifts in Americans’ behavior, and an update on consumer sentiment might offer us more insight on their reactions. Americans say they’re driving less, and data from the Bureau of Transportation Statistics backs them up. Consumers are also spending carefully, with retail sales stagnating.
Ahead of the inflation and consumer sentiment data releases due Friday, investors will hear from a number of consumer companies. Casey’s General Stores, American Eagle Outfitters, and Macy’s are slated to report, along with Adobe, the parent company of Illustrator and PhotoShop. Database and cloud computing giant Oracle will give an update on its financials too. Meanwhile, Apple’s annual product event is generating buzz about new phone models.