U.S. consumer inflation fell for the first time in almost two years in August, down a slight 0.1% from July due to falling commodity prices.

Year over year, the annual rate of consumer inflation fell to 5.4% from 5.6% in July.

Excluding food and energy prices, the consumer price index increased by 0.2%, holding the yearly core rate at 2.5%.

The index for energy dropped 3.1% in August from July, but these prices remain 27.2% higher than a year ago.

The food index rose 0.6% in August after rising 0.9% in July, putting the prices 6.1% higher than August 2007.

According to TD Bank Financial Group, the declining trend in inflation is likely to continue.

“With commodity prices continuing to head lower (particularly energy prices), we expect to see further moderation in consumer inflation in the coming months, which will provide some breathing room for the Fed to cut rates in the coming months,” wrote Millan Mulraine, economics strategist with TD Bank Financial Group, in a statement.