Inflation continued to cool in July, and the latest government figures were seen as increasing the odds of a rate cut by the Federal Reserve.
Consumer prices rose by 2.9% last month on an annualized basis, according to figures released Wednesday by the Bureau of Labor Statistics.
Economists had forecast inflation rising 3% last month, according to financial data firm FactSet.
The Fed has raised interest rates to the highest point in 23 years as it seeks to tame inflation while keeping the US economy afloat. But a weak July job report signaled that the labor market could struggle under the impact of high interest rates, which has reinforced economists’ forecasts that the central bank is likely to cut its benchmark interest rate at its September meeting.
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