Inflation Puts on a Happy Face

For the second time in less than a week, government inflation figures came in less than expected, a development that could take some of the pressure off the Fed to raise interest rates for the third time in three months at its next monetary policy meeting in September.

The government Tuesday said consumer prices fell 0.1% in July, when economists were expecting a 0.2% increase, on top of June's 0.3% gain. It was the first decline in eight months.

Equally important, the core rate of retail inflation, which excludes energy and food costs, rose just 0.1%, matching June's increase, but less than economists' consensus forecast of 0.2%. ...