CPI Eases to 3.4% in July as Inflation Continues to Cool

The Consumer Price Index (CPI) eased to 3.4% in July on a year-over-year basis, marking a continuation of cooling inflation as the Federal Reserve weighs its next policy moves.

The reading, released by the Bureau of Labor Statistics on Wednesday morning, came in as expected and represents a step down from 3.5% in June, according to economists and market forecasts tracked by Dow Jones and prediction market platforms.

The July CPI data release showed core inflation, which excludes volatile food and energy prices, declined to 2.5% annually, down from 2.6% in June.