The Federal Reserve is expected to proceed with an interest rate cut in September despite a modest pickup in US inflation for July. Economists anticipate the Consumer Price Index (CPI) to rise 0.2% from June for both headline and core figures, slightly accelerating from the previous month but still maintaining a downward trend in annual metrics. This slight increase is not seen as significant enough to deter the Fed from easing monetary policy, especially given recent signs of a slowing labor market. The July jobs report showed reduced hiring and rising unemployment, contributing to recession concerns. While some categories like core services may see increases, the continued slowdown in shelter costs is expected to help keep overall inflation in check.