US Inflation Eases Slightly Amid Ongoing Middle East Conflict

The latest Labor Department report shows that US inflation eased slightly to 3.4% in July, down from June's 3.5%. Core inflation, which excludes volatile food and energy prices, hit 2.5% last month, also a decline of 0.1% from the previous month.

U.S. gas prices remain a major driver of inflation, up 25% over last year. The average price for regular gasoline across the country was $4.04 on Wednesday, according to tracking by AAA, with Utah drivers seeing significantly higher prices at an average of $4.33 per gallon.

The ongoing Middle East conflict continues to drive petroleum industry price shocks, affecting headline inflation rates. However, regional inflation in the Mountain West states, which includes Utah, was lower than the national rate at 2.7% in July, unchanged from June's annual rate.