Prior to the federal government’s release of the latest inflation data, consumer prices were thought to have risen just 0.2% from June to July.
US inflation last month rose 2.9% versus a year ago — slightly below expectations in a result that likely paves the way for the Federal Reserve to finally begin cutting interest rates next month.
The Consumer Price Index came in just slightly under the 3% year-over-year gain economists had forecasted for July, and rose 0.2% from a month earlier, which was in line with expectations, according to the Bureau of Labor Statistics.
The latest results confirm a more friendly trend that has taken hold in recent months — including a 3% rise in June — after a volatile start to the year that saw unexpectedly steep price gains.
