A key inflation report released on Wednesday in the United States revealed a slowdown in the price growth of various goods and services, which could reduce the immediate pressure on the central bank to raise interest rates.

Data from the U.S. Bureau of Labor Statistics showed that the Consumer Price Index (CPI), a primary gauge for the Federal Reserve's inflation monitoring, increased by 0.1% month-over-month in July. This figure was in line with the consensus estimate from the Dow Jones survey. The core CPI, which excludes volatile food and energy prices, also rose by 0.2% month-over-month, matching expectations.

On an annual basis, headline inflation stood at 3.4%, while core inflation was 2.5%. Both measures aligned with Wall Street forecasts. Although the inflation rate remains significantly above the Federal Reserve’s 2% target, the modest monthly data for both June and July indicates that the surge in inflation driven by energy prices earlier this year is beginning to subside.