Coming Week: Shopper Spotlight

The CPI report also comes on the heels of testimony in Washington last week from Fed Chairman Ben Bernanke that sent the markets soaring on the belief that a rate hike isn't likely this year.

He said Wednesday that inflation pressures appear to have abated somewhat, though he added that the "monthly data are noisy, however, and it will consequently be some time before we can be confident that underlying inflation is moderating as anticipated."

"Investors will look to next week's CPI data for further moderation in the inflation picture at the consumer level," says Randy Diamond, research sales trader with Miller Tabak. "Don't expect the Fed to change their stance that inflation is their biggest concern and the economy appears to be turning the corner."

Also on tap for Wednesday is the release of the minutes from the two-day January Fed meeting. The bank decided to keep its federal funds target unchanged at 5.25% for the fifth straight meeting, an outcome that had been widely expected on Wall Street.

While the U.S. policy-setting body has kept interest rates stable for months, the coming week could see changes overseas. On Tuesday, the Bank of Japan will meet to decide whether it will raise interest rates by 0.25 points. Currently, Japan's interest rates stand at 0.25%, the lowest among major economies.

"The Bank of Japan interest rate decision on Tuesday may be the highlight of the week," says Paul Mendelsohn, chief investment officer with Windham Financial. "Japan has been creating the liquidity that has been driving these markets, making this an important event. We'll see how it affects the dollar and how it affects the overall market."