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Wall Street is awaiting the release of CPI data on Tuesday for cues on the Federal Reserve’s interest rate path ahead.

The Labor Department is set to release the Consumer Price Index for July on Tuesday. Analysts expect inflation to edge up from the previous month, drifting further away from the Fed’s 2% target, according to a Fox Business report.

Analysts at Goldman Sachs and JPMorgan project CPI to edge up to 2.8% on an annual basis, up from 2.7% in June, according to the report.

Goldman Sachs analysts expect core inflation, which excludes volatile items such as food and energy, to rise to 3.08%, from 2.9% in June. JPMorgan expects core inflation to touch 3.1%, according to the report.

Analysts at Goldman Sachs expect tariff-impacted products to start contributing to the increase in inflation, with their share projected to be 0.12% in July’s CPI print, the report added. These products include furniture, auto parts, personal care, apparel, recreation, communication, and education.

Products with tariffs are expected to increasingly contribute to inflation going forward, the firm said, making up for 0.3% to 0.4% of CPI and core CPI, according to the report.

JPMorgan analysts explained that firms could begin passing on more of the cost increases to customers due to falling expectations of tariff rates coming back down, the report added.

Meanwhile, U.S. equities edged up in Monday’s midday session. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.03%, while the Invesco QQQ Trust (QQQ) gained 0.11%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘neutral’ territory.

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