U.S. consumer inflation eased slightly in July, according to government data published on Wednesday, its smallest 12-month increase since March 2021 and a positive sign for the Federal Reserve as it weighs cutting interest rates. 

The consumer price index (CPI) eased to 2.9 percent last month from a year ago, down slightly from 3.0 percent in June, the Labor Department said in a statement. Meanwhile, a measure that strips out volatile food and energy costs cooled to an annual rate of 3.2 percent.

The monthly inflation rate picked up by 0.2 percent after declining in June, which is consistent with expectations. 

"Today's report shows that we continue to make progress fighting inflation and lowering costs for American households," U.S. President Joe Biden said in a statement. "We have more work to do to lower costs for hardworking Americans, but we are making real progress, with wages rising faster than prices for 17 months in a row," he said.