Inflation expected to tick higher in August as oil prices surge

On Wednesday, investors will watch closely for one of the most important data points the Federal Reserve will consider in its next interest rate decision: August’s Consumer Price Index (CPI).

The report, set for release at 8:30 a.m. ET, is expected to show headline inflation of 3.6%, an acceleration from July’s 3.2% annual gain in prices, according to estimates from Bloomberg. Over the prior month, consumer prices are expected to have risen 0.6% in August, a faster clip than July’s 0.2%…