US Inflation Rate Slumps to 3.4%, Easing Pressure on Fed Hike

The US annual inflation rate, measured by the Consumer Price Index (CPI), decreased to 3.4% in July, according to data from the US Bureau of Labor Statistics (BLS). This represents a decline from the 3.5% growth seen in June.

Brent crude's price remains elevated despite this soft inflation data, which comes amid renewed hostilities in the Middle East. Stephen Innes, managing partner at SPI Asset Management, notes that 'the market moved back toward record territory after July inflation delivered exactly what markets needed… easing some of the pressure around a September Fed hike.'

The month-on-month data shows an increase in US inflation rate by 0.1% in July, reversing the 0.4% decline seen in June.