Fed’s preferred inflation gauge shows latest sign of slowing price increases

An inflation gauge closely tracked by the Federal Reserve remained low last month. The Commerce Department reports prices rose just 0.2% from June to July, the third straight modest increase. Compared with a year earlier, prices rose 3.3% in July, up from a 3% annual increase in June. The year-over-year figure is down sharply from the 7% peak it reached a year ago, though still above the Fed’s 2% inflation target. The latest figures raise the likelihood that the Fed will leave interest rates unchanged when it next meets in late September.