Traders work on the floor of the New York Stock Exchange (NYSE), July 21, 2021.

Brendan McDermid | Reuters

With fresh evidence the labor market is on the mend, investors’ focus shifts to inflation in the coming week and whether it will continue to heat up or show signs of abating.

There is a series of inflation data expected: the consumer price index and the producer price index, released Wednesday and Thursday, respectively.

Jobs and inflation are two key factors that influence the Federal Reserve in making its decisions on policy. Markets are hanging on anything that will help determine when the central bank will start to step away from the measures it took to support the economy during the pandemic, including its $120 billion per month purchases of Treasury bonds and mortgage-backed securities.

Friday’s July jobs report showed a healthy 943,000 increase in payrolls. That gain is enough to spur Fed watchers into thinking the central…

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