Fed’s favored inflation indicator shows price increases remained low in July

Friday’s figures underscore that inflation is steadily fading in the U.S. after three painful years of surging prices having hammered many families’ finances.

An inflation measure closely tracked by the Federal Reserve remained low last month, extending a trend of cooling price increases that clears the way for the Fed to start cutting its key interest rate next month for the first time in four-and-a-half years.