Stocks rose on July’s 0.2% Consumer Price Inflation statistics, but volatile energy components are inflecting again, potentially affecting Fed policy and investor portfolios.

Since June, headline CPI has plummeted from 8.9% to 8.9%, a four-decade high. Year-over-year inflation rose to 3.2%, with energy being a net contributor.

Short-term charts of crude oil, natural gas, and the commodities complex are “bullish,” suggesting higher inflation in the coming months.

The S&P GSCI Index is also rising, set for a breakout. Stock market investors are bracing for extended energy outperformance, with the S&P Select Energy SPDR Fund leading the large-cap sector.

Investors may be content with a Fed that keeps short-term rates higher for longer, as another round of growing price inflation would likely necessitate a rate hike to 6% or higher.