Analysts said that while the monthly rate changes in headline and core CPI were in line with expectations, the actual index levels for both were slightly lower than expected, which helped push the headline CPI annual rate reading down to 2.9% from the expected 3.0%. This is the lowest level since March 2021. Housing inflation is again edging higher, up 0.4% this month compared to 0.2% in June, and overall super core services inflation (e.g., core services excluding housing) is up 0.21% this month, which is quite modest but higher than the small declines in May and June. Overall, these data are consistent with the deceleration in inflation over the past few years, but suggest that price growth has not stopped abruptly. There doesn't seem to be anything here that will bring next month's rate cut to 50 basis points. That may be why short-term bond yields are higher.