US Inflation Eases to 3.4% Amid Smaller-than-Expected Price Growth

US inflation eased to 3.4% annually in July as consumer prices rose just 0.1%, according to data released by the Bureau of Labor Statistics on Wednesday.

The monthly increase was smaller than June's 0.4% decline, and met market expectations.

Energy prices fell 1.5% in July, but remained significantly higher than a year ago, with the energy index up 14.7%.

Shelter costs rose 0.1%, accounting for two-thirds of the overall CPI increase, while food prices edged up 0.1% and dining out became 0.3% more expensive.

Excluding food and energy, prices climbed 0.2% in July after holding steady in June.