US inflation slows to 2.9%, bolstering case for a Fed rate cut

A key measure of US inflation — the Consumer Price Index — slowed in July to an annualized pace of 2.9%, the US Bureau of Labor Statistics reported Wednesday. This is the first time inflation has risen by less than 3% since 2021 and comes in lower than analysts’ estimates.

It’s the latest sign that inflation is cooling. Analysts had estimated a 3% rise, matching June, according to market research firm FactSet. In June, the CPI had fallen to a three-year low.