Fed Holds Firm on Interest Rates as US Inflation Continues to Cool

The US inflation rate has cooled for the second consecutive month in July, falling to 3.4 percent year-over-year from 3.5 percent in June.

According to producer price data, the Producer Price Index (PPI) remained unchanged during the month, helped by a 3.1 percent decline in energy prices.

This has strengthened expectations that the Federal Reserve will keep interest rates unchanged as current policy settings appear restrictive enough to guide inflation lower over time.