New york: Wall Street's closely watched volatility gauge fell to its lowest in more than seven months Wednesday as US inflation data strengthened investors' appetite for risk. The Cboe Volatility Index, commonly known as the VIX, or Wall Street's 'fear gauge,' declined to an intraday low of 14.74, its lowest since early January. The index was last down 0.49 points at 14.79, having closed Tuesday at 15.28.

According to Anadolu Agency, the decline came as US stocks advanced after data showed consumer inflation remained in line with market expectations in July. The US Consumer Price Index rose 0.1% month-on-month and 3.4% annually in July, according to the Labor Department.

The S and P 500 and the technology-heavy Nasdaq Composite gained, while the Dow Jones industrial average traded around the flat line. The VIX measures the level of volatility expected in the S and P 500 in the coming 30 days based on options prices. It generally moves inversely to equity markets, rising during periods of heightened uncertainty and falling as investor concerns ease. A level below 20 is typically associated with relatively calm market conditions, although low readings can also indicate increased investor complacency.