U.S. Consumer Price Growth Slows in July, Strengthening Case for Fed Rate Cut

U.S. consumer price growth was slower than expected in July, potentially strengthening the case for the Federal Reserve to cut interest rates at its next policy meeting in September.

The Bureau of Labor Statistics’ consumer price index (CPI), a closely watched inflation gauge, rose 2.7% in the twelve months to July. This was in line with the pace recorded in June and below economists’ forecasts of 2.8%.

On a month-over-month basis, the CPI increased by 0.2%, matching expectations and showing a cooling trend compared to June’s 0.3% rise.