CPI Inflation Rate Below Views, Signaling Patient Fed; S&P 500 Futures Climb

The consumer price index rose modestly in July, the Labor Department reported Thursday morning, with the annual CPI inflation rate rising slightly less than expected. S&P 500 futures modestly extended gains after the inflation report.

The inflation figures reinforce expectations of no change in Federal Reserve policy.

July consumer prices rose 0.2% vs. the prior month. Core CPI, which excludes food and energy, climbed 0.2% from June. Both matched Wall Street forecasts.

The overall annual CPI inflation rate increased to 3.2% vs. June’s 3%. That year-over-year increase reflected flat prices…