The latest US inflation report shows the Consumer Price Index (CPI) rose by 3.0% year-over-year in June, down from 4.0% in May. Monthly, CPI increased by 0.2%. Core CPI, which excludes food and energy, rose by 4.8% year-over-year, down from 5.3% in May. This positive trend in inflation data has favorable implications for the markets. The Federal Reserve is expected to raise interest rates by 0.25 percentage points in its July meeting.