Inflation eased for the second consecutive month, rising at a 3.4% annual pace in July, in line with economists' expectations and a signal that some price pressures may be easing. By the numbersEconomists polled by the financial data firm FactSet predicted July inflation rose at an annual rate of 3.4%. July's inflation data will be critical to the Federal Reserve's September interest rate decision, following a surprisingly weak jobs report last week. The July labor market report showed employers cut 23,000 jobs last month, rather than a forecast of 95,000 new hires, suggesting the labor market may be much weaker than previously thought. Because of that, many economists now expect the Fed to hold rates steady at the September meeting to support the labor market.