The Globe and Mail reports in its Thursday, Aug. 15, edition that the U.S. consumer price index showed a slowdown in July compared with the previous year, indicating that inflation is easing. A New York Times dispatch to The Globe reports that this is likely to lead to a cut in interest rates by the Federal Reserve at its upcoming meeting. In July, overall inflation was 2.9 per cent on a yearly basis, down from 3 per cent in June, which was slightly lower than economists' expectations. The "core" measure, which excludes food and fuel prices to provide a sense of the underlying trend, also continued to decrease. The recent report represents a significant moment in the Fed's efforts to combat rapid price increases. This is the first time since 2021 that this inflation measure has fallen below 3 per cent. Although price increases are still faster than the prepandemic 2-per-cent pace, they are much slower than the 9.1-per-cent peak reached two years ago. Economists believe that the inflation report strengthens the case for a rate cut at the Fed's Sept. 17-18 meeting. Fed officials have maintained borrowing costs at 5.3 per cent, the highest level in over two decades, in order to reduce demand and control price increases.