US Inflation Pressures Ease Slightly in Latest CPI Report

US inflationary pressures are expected to cool off slightly according to economists' projections ahead of Wednesday's Bureau of Labor Statistics release. The consumer price index (CPI) is seen rising 0.1% in July, following a 0.4% decline in the prior month.

The core measure of inflation, excluding fuel and food, is estimated to have risen 0.2% from the previous month, with an annual increase of 2.5%. This would be the smallest annual increase since February.

Economists at Bloomberg Economics expect the core CPI to fall to its lowest year-over-year reading since March 2021, challenging the popular talking point among Federal Reserve hawks that inflation has been above target for five years.