U.S. consumer prices increased moderately in July, largely in line with expectations, though rising costs for goods because of import tariffs led to a measure of underlying inflation posting its largest gain in six months.

US inflation climbed in July, but the pace came in just below expectations, according to the Bureau of Labor Statistics. The consumer price index (CPI) rose 0.2% for the month on a seasonally adjusted basis and 2.

With inflation easing and the labor market cooling, the risks of keeping policy too tight are mounting. The CME Group now puts the implied odds of a September rate cut at 92.2 percent, reflecting growing expectations in the fed funds futures market that the Fed will respond to the softer data.

Inflation held steady in July and ran slightly cooler than expected, increasing the odds of a Federal Reserve rate cut next month.

The dollar index continues to linger around a two and half week low on Wednesday morning in Asia amid increased prospects of a Federal rate cut. Data released on Tuesday showed