US inflation dips below 3% for the first time since 2021

2.9% rise

The annual rate of inflation slowed to 2.9% in the US in July, its lowest rate since March 2021, mounting further pressure on the Federal Reserve to snip interest rates in September.

Economists had set expectations that the annual rise in the consumer price index would remain at June's 3% rate, but the data from the US Bureau of Labor Statistics came in 0.1% lower than anticipated. Core CPI, a figure that excludes volatile energy and food prices, also came in 0.1% lower than June, rising by 3.2% in July compared to 3.3% a month earlier. This core CPI reading represented a 0.2% monthly climb, double the increase of the 0.1% June jump.  US recession overtakes geopolitical conflict as top tail risk for global investors Energy prices remained flat over the month, w...