NEW YORK - Stocks mostly fell on Thursday ahead of much-anticipated US inflation data, which comes against a backdrop of renewed concerns that the Federal Reserve could announce another interest rate hike before the end of the year.
The feel-good factor that characterised much of July has given way to uncertainty about the US central bank's plans following a mixed jobs report and warnings from policymakers that more was needed to finally get prices under control.
Ongoing weakness in China's economy -- and lack of concrete action by authorities to address it -- are also taking their toll on investor sentiment, helping to drive a retreat in global markets in recent weeks.
All eyes are on the release later Thursday of the US consumer price index for last month, a closely watched gauge of inflation that plays a key role in the Fed's decision-making on monetary policy.
While rate hikes have dampened steep price rises -- from a four-decade high of 9.1 percent in June last year to three percent now -- observers warned officials would find it harder to get inflation back down to its two percent target.
After falling for 12 straight months, forecasts are for a slight uptick in the CPI, partly because of rising oil costs.
However, core inflation is tipped to ease again, which commentators said should allow the Fed to stand pat on rates at its next meeting in September.
The US central bank hiked in July but indicated that could be the last such move, after more than a year of tightening.