US Inflation Slows to 3.4% in July Amid Ongoing War with Iran
US inflation slowed to 3.4% in July, providing some relief for households battered by over five years of elevated prices since the pandemic.
The consumer price index (CPI) rose 3.4% year-on-year, easing from a 3.5% increase in June, according to data released by the US Bureau of Labor Statistics on August 12.
Energy prices continued to drive price increases, with gasoline up 24.6% and fuel oil up 39.1% from last year.
However, the energy index overall was 1.5% lower than a month ago, indicating a downward trajectory for prices as talks to end the US-Iran war continue.
The slowdown in inflation may give the Federal Reserve more flexibility on interest rates ahead of the midterm elections, but core CPI, which excludes volatile food and energy prices, rose 2.5% from last year.