Inflation continues to loosen its grip on American consumers, with price hikes slowing by the most in three and a half years and all but cementing a quarter-point rate cut from the Federal Reserve when it meets next week.

With inflation cooling and worries about the job market spreading, the central bank is expected to announce a long-awaited rate cut next week.

This weaker-than-expected reading means that the case for the US Fed to make cut rates faster has been bolstered. Bringing down interest rates faster would mean that the US FOMC would need to make big