In the latest inflation update, U.S. Consumer Price Index (CPI) figures for July closely match forecasts, providing the Federal Reserve with potential room for maneuvering. The monthly CPI rose by 0.2%, in line with predictions and slightly above June's -0.1%. Year-over-year, the CPI showed a 2.9% increase, just under the previous 3.0% and in line with expectations.

Core CPI, which excludes volatile food and energy prices, also saw a 0.2% rise month-over-month, consistent with estimates and marginally higher than the 0.1% increase recorded in June. Annually, core CPI grew by 3.2%, slightly down from the previous 3.3% and matching forecasts.

These figures suggest a stabilizing inflationary phase and a cooling economic landscape.