Price growth in the world's largest economy slowed again last month, according to the US Bureau of Labor Statistics figures published on Wednesday, but only as much as expected, leaving the Federal Reserve's September rate decision uncertain.
Prices rose 0.1% on the month after falling 0.4% in June, taking the annual rate to 3.4%, well below May's 4.2%. Core prices, stripping out food and energy, rose 0.2% after being flat in June, easing to 2.5% from 2.6% annually.
Every figure matched the Dow Jones consensus, though the annual falls owe much to comparisons with a strong summer in 2025, and monthly momentum picked up from June's soft readings.
US stock futures moved higher immediately after the release, while traders trimmed their bets on tighter policy.
The odds of a September rate hike on CME's FedWatch tool also quickly fell from 48% to 42%, but money markets continue to price in a scenario that is difficult to read with probabilities not far from a coin toss.
