U.S. consumer prices rose 0.2% in July, keeping the year-on-year rate at 2.7% and coming in just below economists’ expectations. Core prices, which exclude food and energy, climbed 0.3% on the month and 3.1% from a year earlier—marking the largest monthly core gain in six months as airline fares, household furnishings and dental services led increases. The tame headline reading outweighed concerns about the firmer core figure and propelled risk assets. The S&P 500 added 1.1% to a record 6,445.76, the Nasdaq Composite advanced 1.4% to an all-time high of 21,681.90, and the Dow Jones Industrial Average rose 483 points. Short-term Treasury yields slipped while the 10-year benchmark edged up to 4.28%. Traders lifted the implied probability of a quarter-point Federal Reserve rate cut at the 16-17 September meeting to 94%, from 86% the previous day, according to CME Group data. Fed officials will see one more set of inflation and employment numbers before that decision, but the latest CPI report reinforced expectations that the central bank can begin easing policy even as tariffs feed through only gradually to consumer prices. The prospect of cheaper U.S. borrowing costs rippled across global markets. Gold firmed, the dollar softened and early Wednesday dealing sent Australia’s ASX 200 up 0.1%, Japan’s Nikkei 225 0.8% higher and South Korea’s Kospi ahead 1.0%, extending Wall Street’s rally.