Underlying US inflation was subdued in July, likely easing pressure on the Federal Reserve to raise interest rates.
The consumer price index, excluding often-volatile food and energy categories, increased 0.2% from a month earlier, according to Bureau of Labor Statistics data out Wednesday. On an annual basis, it advanced 2.5%, matching the slowest pace since March 2021.
Overall, consumer prices rose 0.1% from the prior month and 3.4% from a year earlier.
The report suggests the impact of the energy-price shock from the Iran war continued to fade in July. The figures may give the Fed more room to weigh inflation pressures against a recent slowdown in hiring as it debates whether to lift borrowing costs at its Sept. 15-16 meeting.
Policymakers will see additional reports on employment and inflation before the September meeting, and investors will be listening closely to Fed Chairman Kevin Warsh's expected remarks at the central bank's annual Jackson Hole symposium later this month.
US stock futures rose and Treasury yields were little changed. Investors pared bets on a September rate hike.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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