Soaring crude oil prices have put the Federal Reserve on track for a September rate hike, with as much as 90% of trading-circle respondents expecting a 25 basis point increase, according to CME Group data cited by The National. The European Central Bank last week hiked rates by the same amount, saying the conflict in the Middle East continues to generate inflation pressures and that inflation is set to remain well above target for an extended period. Oil is trading above $100, with last week's gain alone at 8%, and Brent crude briefly topped $108 per barrel in Asian trading. ING analysts also expect the Fed to hike, noting the August inflation reading remains well above target at 3.4%, with core consumer prices up 0.29% from July, double the rate needed to bring inflation down to the Fed's 2% target. Higher oil prices have pushed U.S. fuel prices up, with diesel hitting an all-time high of $6 per gallon last week, while AAA data shows the national average for gasoline at $4.3120 per gallon and diesel averaging $6.2040 per gallon as of Sunday.
CME Group Inc
