US Inflation Eases to 3.4% in July Amid Ongoing Energy Price Pressures

US inflation cooled slightly in July to an annualized rate of 3.4%, down from 4.2% in May, according to the latest data.

The decrease comes despite energy prices remaining above prewar levels, with Brent crude still lower than its peak in late April but higher than before the US-Iran conflict.

Gas at the pump is averaging $4 a gallon in the US, up from $3.15 a year ago, and consumers are continuing to feel the pinch of elevated prices.

The news may ease pressure on the Federal Reserve at its next rate-setting meeting in September, but some bank presidents are calling for interest rates to be raised to combat inflation.