 Despite the report from the government that inflation moderated for the third straight month in June, consumer prices declined one-tenth of a percent from May to June, three percent higher from last year. First-time claims for unemployment benefits fell by 17,000 last week to their lowest level in nearly two months. Mary Daly, the president of the Federal Reserve Bank in San Francisco, says she expects further easing in both price pressures and the labor market to warrant an interest rate cut.