US Inflation Rate Falls to 3.4%, But Still Above Fed Target

The July inflation rate in the US ticked down slightly to 3.4%, according to data released by the Bureau of Labor Statistics (BLS). This is a decrease from June's 3.5% annual inflation rate.

Despite this small dip, the current inflation rate remains above the Federal Reserve's 2% target. Fed Chair Kevin Warsh emphasized that there is 'no soft inflation target' and that the central bank will continue to pursue price stability.

The decrease in inflation was attributed to a decline in energy prices, which fell by 1.5% in July after falling 5.7% from May to June. Food prices also increased by 0.1% last month, marking the fourth consecutive monthly rise.