* U.S. markets dip following higher inflation measure

* Fed kicks off two-day policy meeting

* Oil prices surge on returning travel demand

By Pete Schroeder

WASHINGTON, June 15 (Reuters) – Wall Street took a step back from record highs Tuesday, as investors weighed whether higher inflation readings might nudge the U.S. Federal Reserve closer to tapering monetary stimulus.

With the Fed kicking off a two-day policy meeting today, investors are balancing the central bank’s insistence inflation will be transitory with fresh data showing prices growing faster than expected.

In separate reports, U.S. economic data showed an acceleration in producer prices in May as supply chains try to keep up with surging demand with the pandemic easing, while retail sales dropped more than expected as consumers turned their attention back to service industries.

The readings have investors wondering if the Fed may come out of its meeting Wednesday with any…

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