US Inflation Held at 3.4% in July as Monthly CPI Rose 0.1%, Matching Forecasts

US consumer prices rose 0.1% in July on a monthly basis, leaving the annual inflation rate at 3.4%, the Labor Department reported Wednesday, exactly in line with analyst expectations. The reading marks a continued cooling from earlier in the year but keeps the Federal Reserve's path forward uncertain. Analysts broadly agreed the data does not compel an interest rate hike, though it does little to settle the debate over whether the Fed will cut rates at its September meeting, which sources described as still on a knife edge.