US Core Inflation Eases Pressure on Fed as Rate Hike Concerns Subside

The US core inflation rate has come in lower than expected, which may ease pressure on the Federal Reserve to raise interest rates. According to data released by the Bureau of Labor Statistics, the consumer price index excluding food and energy categories increased by 0.2% from a month earlier in July.

This marks the slowest pace since March 2021, with an annual rate of 2.5%. This subdued inflation reading may provide some relief for the Federal Reserve as it considers its next move on interest rates.