A 0.2% monthly rise in September consumer prices is expected in Wednesday’s CPI report, with annual inflation seen at 3.6% as the midterm elections enter their final month.
Oil above $100 a barrel, gasoline well over $4 a gallon and diesel near September record highs have lifted costs for households and businesses as the U.S.-Iran war stretches into an eighth month.
A day later, producer prices are also expected to accelerate from August’s 5.4% annual pace, signaling pipeline inflation is still building before it reaches consumers.
PepsiCo already said it is raising prices on Doritos and other products because of higher fuel, aluminum and commodity costs, underscoring how broad the pressure remains.
The week’s data will also test whether consumers and housing can keep absorbing those costs, with retail sales due and existing home sales expected to stay near a 30-year low.