* U.S. CPI in line with expectations

* CAE Inc jumps after results

Aug 14 (Reuters) - Canada's main stock index ended in the green on Wednesday, as investors betting on U.S. Federal Reserve's rate cut next month were reassured after inflation south of the border slowed to below 3% for the first time in over three years.

The Toronto Stock Exchange's S&P/TSX composite index rose 141.83 points, or 0.63%, at 22,760.01

A closely watched U.S. inflation data print showed consumer prices rebounded as expected in July, and the annual increase in inflation slowed to below 3% for the first time since early 2021, supporting the view inflation was being tamed.

"With inflation continuing to progress in the right direction, they (the Fed) will likely signal the start of a new easing cycle later this month at the Jackson Hole," said Angelo Kourkafas, investment strategist at Edward Jones Investments.

Investors have grappled with worries about a slowdown in the world's biggest economy, while looking ahead to the start of the Fed's easing cycle. Lower U.S. interest rates typically lead to more demand for riskier assets such as equities.

"There have been some concerns that the US economy is slowing, the consumer is slowing, but... retail sales number (later this week) will help investors gauge the state of the economy," Kourkafas said.

The S&P 500 closed higher. However, Alphabet and some megacap tech stocks traded lower, which weighed on the Nasdaq composite.

In Canada, energy, healthcare and financials were among sectoral gainers. The healthcare sector rose 1.8%, led by a 4.3% rise in Tilray Brand shares .

Meanwhile, the energy sector gained 0.9% as crude prices edged higher despite easing supply concerns over rising conflict in the Middle East.

The broader materials sector led sectoral losses, falling 0.7%, as gold prices dipped after investors trimmed bets for larger Fed rate cuts.

Among individual stocks, CAE Inc rose 5%, after the company's first-quarter revenue beat estimates.

Franco-Nevada Corp lost 6.3%, after the company reported quarterly adjusted earnings below expectations. (Reporting by Lisa Mattackal in Bengaluru; Editing by Shreya Biswas and Alistair Bell)