Last month, inflation declined to its lowest level since February 2021, according to a Labor Department report Wednesday. The recent CPI report showed consumer prices increased 0.2% in August, putting the 12-month inflation rate slightly below the 2.6% estimate. However, core inflation rose 0.3% for the month, putting a damper on bets for an aggressive interest rate cut.

Economists believe the Federal Reserve is still on track for a planned benchmark interest rate cut, to bring the rate down from a 23-year high.