US Core Inflation Hits Slowest Pace Since March 2021

Underlying US inflation remained subdued in July, as indicated by the consumer price index (CPI) data released by the Bureau of Labor Statistics. The CPI, excluding food and energy categories, increased by 0.2% from a month earlier, marking the slowest pace since March 2021.

On an annual basis, the core inflation rate advanced to 2.5%, matching the lowest rate in nearly two years. This development is likely to ease pressure on the Federal Reserve to raise interest rates.