US Inflation Falls to 3.4% in July, Easing Pressure on Fed

Inflation rates in the US have fallen to 3.4% in July, according to the Bureau of Labor Statistics' latest report.

This marks a decline of one-tenth of a percentage point from the previous month and is considered welcome news for the Trump administration, which has been working to curb inflation since its surge following the Iran war.

The increase in energy prices has been a significant contributor to inflation this year, with prices soaring after the conflict began. However, even before the energy price shock, inflation was running above target levels.

Core inflation, which strips out volatile food and energy prices, fell to 2.5% for the year ending in July.