The core Consumer Price Index (CPI), which tracks prices of goods and services excluding food and energy, rose by 0.3% in July on a month-over-month basis.

Why it matters: The reading shows a slowdown in the rate at which inflation has been growing, after a 0.9% rise in June and 0.7% in May.

• The Federal Reserve is watching closely for signs that inflation is getting overheated, which could lead it to pull back its emergency market support sooner rather than later.
• Economists expected a 0.4% rise.

The big picture: While inflation is still high by historical standards, Wednesday's figures show that it may have peaked, at least for the time being. Another inflation measure, the core personal consumption expenditures index (PCE), also retreated from a peak monthly growth level in its most recent reading on July 30.

Zoom in: Meanwhile, the headline CPI figure, which includes energy and food prices, showed a 0.5% monthly increase, compared to a 0.9% uptick in June.

• On a year-over-year basis, July’s core CPI and headline CPI figures rose 4.3% and 5.4%, respectively.