July’s inflation report was close enough to expectations to ease pressure on the Federal Reserve to raise interest rates next month without resolving much about the outlook beyond that. Monthly inflation readings have taken on greater importance this summer because officials are deciding whether they can still defend a forecast that has inflation coming down without higher rates, or whether they need to raise rates to get there. Data for June and July haven’t suggested the type of broadening in price pressures that would force officials to abandon the forecast. Neither do they resolve worries that inflation is settling in above the Fed's target.(Nick Timiraos)