Inflation Slows, Eurozone Economy Edges Ahead

US inflation has slowed for a second consecutive month to 3.4% in July, according to recent data. This marks a decrease from June's rate of 3.5%, aligning with market expectations. Core inflation, which excludes food and energy prices, also eased to 2.5% in July from 2.6%, reaching its slowest pace since March 2021.

The lower inflation rate has bolstered expectations that the Federal Reserve will maintain interest rates at their current level when it meets next month. The Fed had previously kept rates on hold at 3.5%-3.75% in July, with a 9-3 vote citing inflation above its 2% target.

In other economic news, the eurozone's economy grew by 0.4% in Q2, matching previous estimates and exceeding Q1's 0% growth. Employment in the eurozone area also increased by 0.1% over Q2 compared to the previous quarter.