Inflation continued to cool in July, with the latest government figures seen as increasing the odds of an interest rate cut by the Federal Reserve.
Consumer prices rose 2.9% last month on an annual basis, according to figures published Wednesday by the Bureau of Labor Statistics.
Economists had forecast that inflation rose 3% last month, according to financial data firm FactSet.
The Fed has hiked interest rates to their highest point in 23 years as it strives to tame inflation while also keeping the U.S. economy afloat. But a weak July jobs report signaled that the labor market could be buckling under the impact of high rates, which has boosted economists’ forecasts that the central bank is likely to cut its benchmark rate at its September meeting.
—This is breaking news and will be updated.
