The July Consumer Price Inflation report made another step toward the Federal Reserve’s 2% target, though less pronounced than June’s, sustaining optimism for imminent interest rate cuts. Last month, a basket of goods and services purchased by U.S. consumers rose by 2.9% year-over-year, slightly below the previous and expected 3%, marking the fourth consecutive decline in annual inflation and the lowest rate since March 2021. The annual core inflation rate also eased as anticipated, from 3.3% to 3.2%, the lowest since April 2021. However, the July report was marred by an increase in the shelter component, which, due to its significant weight in the basket, accounted for about 90% of the headline inflation rise. The decline in annual inflation rates wasn’t ...