On the heels of a favorable Producer Price Index last week, the Consumer Price Index followed suit with a reading that could support an interest rate cut. The Consumer Price Index (CPI) increased 0.2% in July, setting the 12-month inflation rate at 2.9%. The annual rate is the lowest since March 2021 and is nearing the 2% target that the Federal Reserve has maintained is necessary for a rate cut. The Fed meeting is scheduled for September 17−18.