Falling Energy Prices Spark Hopes for Fed Rate Cuts

US inflation came in below expectations in a boost for investors hoping that the US Federal Reserve might be able to start cutting interest rates in a matter of months. Figures from the Bureau of Labor Statistics showed that prices did not increase in the month for the first time since last June. Economists had expected to see a 0.1 percent increase. This meant the annual rate of inflation eased to 3.3 percent, slightly below the 3.4 percent expected by markets. Energy prices were the largest downward drag, falling 2.0 percent. Shelter costs, which…