US Inflation Eases to 3.4% in July Amid Falling Gas Prices

The US inflation rate declined to 3.4% in July from a year ago, down slightly from June's 3.5%, according to the Labor Department.

This decrease is the second consecutive drop after sharp increases in gas prices pushed inflation to 4.2% in May, its highest level in three years.

The decline is attributed to falling gas and grocery prices, with gas prices averaging $4.04 per gallon nationwide, a 16-cent increase from last month.

However, despite the decrease, costs remain elevated, particularly for airfares, which rose 2.2% in July, and computer prices, which jumped 3.5%, driven by Apple's decision to raise prices due to AI-related semiconductor cost increases.