US inflation rises 0.1% in July, easing pressure on Fed

US consumer inflation rose mildly, increasing 0.1% in July, in line with economists’ expectations.

The results, which put the annual rate at 3.4%, ease pressures on the Federal Reserve as it weighs an interest rate hike in September. The inflation data, along with a weak July jobs report, bolster the argument for a hold on rates. But the debate is far from over: Another batch of inflation data is due before next month’s meeting, and economists remain split on the best path forward.

Odds that the Fed will hold rates steady are now at 60%. “It’s complicated to hold; it’s also complicated to hike, and it’s almost impossible to cut,” a former Fed economist told The New York Times.