Wall Street week ahead: The market focuses on key inflation updates

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NEW YORK (AP) — Wall Street will get several important updates about inflation this week.

On Thursday, the U.S. will release its August report for inflation at the wholesale level, called the Producer Price Index, or the PPI. It provides details on prices for businesses before they pass along the costs to consumers.

On Friday, the U.S. will release its better-known Consumer Price Index, for August. The CPI is closely watched and provides details on price changes for specific grocery items, furniture, and clothing, among other categories. It also details price changes for services ranging from car maintenance to travel and restaurant dining.

The reports will help give Wall Street and the Federal Reserve a clearer picture of inflation's direction. The rate of inflation remains above 3% and is squeezing households and businesses. Inflation is also outpacing wage growth, putting more strain on households.

Rising energy prices because of the U.S. war with Iran have been fueling inflation. Shipping has been stifled in the Strait of Hormuz, through which about 20% of the world's oil supply flowed prior to the war. That has pushed prices for gasoline and shipped goods higher.

Ongoing tariff conflicts between the U.S. and most of the world also threatens to send prices higher.

The Fed has been holding its benchmark interest rate steady, but Wall Street expects it to raise the rate at least once this year to help fight inflation. The central bank's stated goal is to cool inflation to a rate of 2%.