US Inflation Eases Slightly as Energy Prices Cool

US inflation rates have eased slightly, according to new figures released by the Bureau of Labor Statistics. The annual inflation rate fell from 3.5% in June to 3.4% in July.

The slowdown was mainly due to lower energy prices, which rose only 0.1% in July, compared to a 2.9% increase in gasoline prices alone. Food prices also increased at a slower pace than the previous month.

However, housing costs remained a significant contributor to inflation, with a 0.1% monthly increase pushing the overall headline figure up. Medical care and airline tickets also saw price rises, while car insurance continued to fall.

The Federal Reserve's new chair, Kevin Warsh, has stated that the central bank's priority is to bring down inflation without causing unnecessary shocks to the economy.