US inflation eased in July, with the headline consumer price index slipping to 3.4% year‑on‑year, down from 3.5% in June, as petrol prices fell, even as the economic impact of the conflict in Iran continued to filter through.
Source: Sharecast
The softer headline figure was driven by another decline in energy costs as, despite pump prices surging later in the month amid heightened tensions with Iran, petrol was still 2.9% lower on average than in June. Heating oil and other energy components also contributed to the overall moderation.
The Bureau of Labor Statistics also revealed that core CPI, which strips out volatile food and energy costs, edged down to 2.5% in July, down from 2.6% a month earlier.
July's CPI reading comes as the Federal Reserve faces renewed pressure to further tighten monetary policy, with inflation still elevated following months of disruption to energy supplies, tariff‑related price pressures and strong demand linked to the AI boom.
Reporting by Iain Gilbert at Sharecast.com
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