The July inflation report was in line with economists' expectations. Here's what Wall Street has to say:

-- "In-line inflation will keep the 'no need to hike rates' narrative that took hold after last week's jobs report intact. There will be another round of inflation data before the September FOMC meeting, so the storyline could still change," said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management.

-- "The big surprise with a report that had no surprises (all of the data came perfectly in line with the estimates) is that a situation where inflation isn't reaccelerating, coupled with the most recent, weak jobs report gives the Fed more time to wait," said Chris Zaccarelli, chief investment officer at Northlight Asset Management.

-- "This in-line report doesn't provide the necessary perspective and leaves the Fed without a compelling reason to change course. It would also keep the possibility of a fourth-quarter hike alive, but the Fed would likely need to see additional evidence that inflation is reaccelerating before moving in that direction," said Karen Manna, fixed income investment director at Federated Hermes.

-- "All the price data was in line with expectations. This should encourage a relief rally in U.S. Treasury yields and some compression of the term premium," said Brad Conger, chief investment officer at Hirtle & Co.

-- "The July CPI report narrowly meets the bar to nudge the Fed toward holding rates steady at their next meeting in September. Fed policymakers signaled in July that core inflation would have to improve between now and then for them to refrain from raising interest rates," said Bill Adams, chief U.S. economist at Fifth Third Commercial Bank.