Consumer price growth in July slowed to its lowest post-pandemic level, a sign that the surging inflation that has gripped the U.S. economy is finally ebbing.

On a 12-month basis, the Consumer Price Index (CPI) cooled to 2.9%, down from 3% in June — the first time the index dipped beneath 3% since March 2021. Month over month, it rose 0.2% after falling 0.1% in June.

The latest reading adds to growing signs that the swift price increases consumers have suffered since the pandemic are abating, and it raises pressure on the Federal Reserve to cut interest rates as soon as next month.