US Inflation Slows to 3.4%, Gives Fed Room for Rate Hikes

US inflation slowed to 3.4% in July, despite turbulent oil prices caused by the Iran war. The data was released by the US Bureau of Labor Statistics on August 12.

The consumer price index (CPI) rose just 0.1% from a month earlier, but fell year-over-year. This is in line with economists' expectations, who predicted a slowdown after five years of elevated prices since the pandemic hit.

However, US inflation remains above the Federal Reserve's long-term target of 2%. The central bank may still have some room to maneuver ahead of potential rate hikes.