Markets Await US CPI Report as Headline Inflation Is Forecast to Reach 3.6%

Financial markets are preparing for Wednesday's U.S. Consumer Price Index report, where headline inflation is forecast to climb to 3.6% year-over-year and 0.6% month-over-month, driven higher by energy costs. This compares to previous readings of 3.4% and 0.4%, respectively. Meanwhile, core CPI is projected to increase 0.2% monthly and edge up to 2.5% annualized from 2.4%. Along with the inflation report, investors are watching the Federal Reserve's Beige Book, API crude stock data, and speeches from Fed Governors Michelle Bowman and Thomas Barkin.