Inflation Slows to 3.4%, But Still Above Pre-War Levels

U.S. inflation slowed last month, and prices rose by only 3.4% in July compared to the same time last year.

This is down slightly from 3.5% in June, but still higher than before the Iran war began in February when it was 2.4%.

On a monthly basis, prices rose just 0.1% from June to July, which could ease pressure on the Federal Reserve to raise interest rates.

The Labor Department reported that core inflation, excluding food and energy categories, also slipped to 2.5% in July from a year ago, down from 2.6% in June.