Inflation remains above the Federal Reserve’s 2% target, and with rising oil prices and a weakening labor market, the Federal Reserve may raise interest rates later this year.

Markets expect the central bank to suspend rate hikes at its September 20 policy meeting.

Key Private Bank senior vice president and managing director of investment strategy Brian Pietrangelo reacted to the report, while Principal Asset Management chief global strategist Seema Shah warned of one more rate hike before the end of the year.

The recent increase in energy costs is not surprising, but the prevailing expectation of core inflation remains constant.