July Inflation Rate Slows to 3.4%, Gas Prices Ease
US inflation cooled to 3.4% in July as gas prices eased, according to new data released by the Bureau of Labor Statistics.
The latest Consumer Price Index showed a monthly increase of just 0.1%, matching economists' expectations.
This marks the second consecutive month that inflation has slowed down, following a three-year high earlier this year due to the Iran war and resulting energy shock.
However, some cost-of-living concerns persist, as Americans' pay gains lag behind price hikes. The latest jobs report showed average hourly earnings rose 3.2% in July, lower than the 4.8% increase in June.
The slowdown in inflation may ease pressure on the Federal Reserve to hike interest rates, according to Christopher Rupkey, chief economist at FwdBonds.