US Inflation Rate Slows to 2.9 Percent as Shelter, Motor Vehicle Insurance Remain High

Core inflation also dipped in July to 3.2 percent.

A customer shops at a Safeway store in San Francisco, Calif., on June 11, 2024. Justin Sullivan/Getty Images

The U.S. annual inflation rate slowed for the fourth consecutive month in July and came in below market forecasts, raising the odds of the Federal Reserve cutting interest rates in September.

The consumer price index (CPI) eased to 2.9 percent last month, from 3 percent in June, according to the Bureau of Labor Statistics (BLS). The consensus estimate was 3 percent.