Is inflation still cooling? Thursday's report on June prices will provide clues

Optimism is rising among economists, investors and Federal Reserve officials that U.S. inflation is nearly under control, with the latest report on consumer prices expected to show another month of mild increases. Consumer prices in the United States are believed to have edged up just 0.1% from May to June in data that the government will release Thursday. Inflation in June was likely held down by lower gas prices and a slight rise in grocery costs. The small increase would follow an unchanged reading the previous month. Measured from 12 months earlier, inflation for June is predicted to be 3.1%, down from 3.3% in May. Chair Jerome Powell and his fellow Fed policymakers nevertheless still sound cautious.