Stock market today: US futures edge higher as key inflation report matches expectations

Consumer prices increased less than expected in July as investors continued to look for signs that the Federal Reserve could begin to cut interest rates.

The July Consumer Price Index (CPI) showed prices ticked up slightly at 0.2% over last month, an increase from the 0.1% decline in June. Prices rose 2.9% over the prior year, a decrease from the 3% seen in June. The report marked the first time that overall inflation, on a year-over-year basis, has come in below 3% since March of 2021.

Economists had expected prices to increase 0.2% month over month and rise 3% year over year, according to Bloomberg data.

When removing the volatile food and energy categories, "core" inflation fell to an annual rate of 3.2% from 3.3% the month prior. Economists surveyed by Bloomberg had expected core inflation of 3.2%. On a monthly basis, core inflation was 0.2%, up slightly from the 0.1% the month prior.