Inflation Slows to 3.4% in July, Fed May Hold Interest Rates Steady

Inflation eased in July to an annual rate of 3.4%, according to the latest CPI report, which matches economists' expectations.

The Core CPI, excluding energy and food prices, rose at a slower pace of 2.5% in July, down from 2.6% in June.

This marks the second consecutive month that inflation has slowed down since hitting a three-year high of 4.2% in May, when oil prices surged.

Experts say that this trend may continue throughout the year, with some forecasting that inflation will dip close to the Federal Reserve's 2% annual goal by next year.