Gasoline likely to boost US consumer prices in August

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By Lucia Mutikani

WASHINGTON, Sept 11 (Reuters) - U.S. consumer prices likely accelerated in August as the cost of gasoline rebounded after two straight monthly declines, which would reinforce financial market expectations that the Federal Reserve could raise interest rates next week.

The Labor Department's Consumer Price Index report on Friday would follow ‌strong readings in several key components of the Producer Price Index released on Thursday that feed into the Personal Consumption Expenditures price indexes, the inflation measures ‌the U.S. central bank tracks for its 2% target.

Last week's robust employment report for August boosted rate hike prospects after the odds diminished following comments by Fed Governor Christopher Waller at a Reuters NEXT Newsmaker event ​that he was inclined to argue in favor of keeping rates steady if data confirmed inflation pressures were cooling.