Inflation Slows to 3.4% in July as Energy Prices Rebound
US consumer prices cooled slightly in July, falling to an annualized rate of 3.4%. This represents a decrease from the three-year high reached in May, when inflation hit 4.2%.
The slowdown in inflation is attributed to lower energy prices, which were boosted by a brief ceasefire between the US and Iran in June. However, prices have remained elevated compared to prewar levels.
Gas prices at the pump averaged $4 per gallon in July, up from $3.15 last year, according to the AAA. Brent crude, the international benchmark for oil prices, rose after a peace deal with Iran collapsed in July.
The latest inflation data may ease pressure on the US Federal Reserve at its next rate-setting meeting in September. Fed officials voted 9-3 to maintain rates last month, and some bank presidents have been calling for rate hikes to combat rising inflation.