The Globe and Mail reports in its Tuesday edition that investors will zero in on inflation data next week that they say could determine whether the U.S. Federal Reserve hikes interest rates later in the month. A Reuters dispatch to The Globe says U.S. stock indexes as of Thursday were on pace for their second straight week of gains, lifting the benchmark S&P 500 to just 0.7 per cent shy of its August record high. Markets have been consumed in recent weeks by the prospects of rate hikes at the Fed's next meeting on Sept. 15 to 16. Such bets ramped up after a speech last month from Fed Chairman Kevin Warsh that signalled the central bank might have to act if inflation remains high. That uncertainty left investors bracing for volatility tied to the monthly consumer price index report, due on Sept. 11, that is Wall Street's most closely watched inflation gauge. Fed officials "have spent recent months underscoring their commitment to price stability, and at some point, that rhetoric will need to be backed by action if inflation fails to show sufficient progress," said Sid Vaidya, chief investment strategist at TD Wealth. "CPI will certainly move the needle one way or the other, so there is a lot riding on this report."