New Delhi, Sept. 5 -- Many economists and investors expect the Federal Reserve to raise interest rates by a quarter of a percentage point at its Sept. 16-17 policy meeting. But this coming week's inflation data may prove cool enough to keep officials on the sidelines-and the federal-funds rate in a target range of 3.50% to 3.75%.

Friday's employment report lowered the bar for an interest-rate hike, putting even greater focus on the latest inflation readings as measured by the producer price index, or PPI, to be released on Sept. 10, and the consumer price index, or CPI, out on Sept. 11. The Bureau of Labor Statistics reported on Friday morning that the U.S. economy added 162,000 jobs in August, far above expectations, with the labor-forc...