Investing.com -- The pace of economic growth rose "slightly" since late May and the pace of inflation continued to slow as wage increases moderate to or nearing pre-pandemic levels, according to the Federal Reserve's Beige Book released Wednesday.

"Overall economic activity increased slightly since late May, [though] overall economic expectations for the coming months generally continued to call for slow growth," the Fed said in its Beige Book economic report, based on anecdotal information collected by the Fed's 12 reserve banks through June. 30.

The pick up in economic activity comes as several districts noted some slowing in the pace of inflation, the report said, though inflation expectations were "stable or lower over the next several months."

The somewhat improved outlook on inflation comes on the heels of data Wednesday showing that inflation cooled more than expected in June.  

The consumer price index rose 0.2% last month after edging up 0.1% in May, with annual inflation also slowing to a 3.0% pace from 4% a year earlier, marking the slowest pace of price pressures since March 2021.

On the labor market, while demand remained healthy, multiple districts reported that "wage increases were returning to or nearing pre-pandemic levels."