Better than expected.. US inflation falls to 2.9% in July

The annual inflation rate in the US fell in July to 2.9%, which was lower than expectations that it would stabilize at 3%, unchanged from the previous two months.

This new inflation rate, which is the lowest in more than 3 years, will boost hopes that the US Federal Reserve will cut interest rates soon.

On a monthly basis, consumer prices rose by 0.2%, which was in line with expectations, after recording -0.1% in June.