US inflation dipped in July as Federal Reserve expected to cut interest rates

Prices rose at an annual rate of 2.9% in July, as inflation dipped below 3% for the first time since 2021

US annual inflation rate dipped below 3% in July for the first time since 2021, a relief to investors who are expecting the Federal Reserve to cut interest rates next month as a sense of unease has settled over Wall Street after signs of a cooling labor market.

Prices rose at an annual rate of 2.9% in July while core inflation, which does not account for the volatile food and energy industries, climbed 3.2% over the previous 12 months and 0.2% since June.