US annual consumer price increase slows to below 3% as inflation ebbs

U.S. consumer prices rose moderately in July and the annual increase in inflation slowed to below 3% for the first time in nearly 3-1/2 years, opening the door wider for the Federal Reserve to cut interest rates next month.

The dollar lost ground against its major peers, helping the euro to an eight-month peak, as the U.S.consumer price index showed inflation is subsiding, reinforcing expectations that Federal Reserve interest rate cuts are near.