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US inflation eased to 3.4% in July, but prices remain elevated
Gasoline averaged $4.0 per gallon in the US, about $0.85 higher than a year ago, while core inflation rose to 2.5%.
US consumer prices cooled slightly in July, bringing the annualized inflation rate down to 3.4%, but the overall level of prices remains higher than before the war with Iran, according to the Guardian Business.
The report said inflation fell 0.7% in June during a brief ceasefire that pushed energy prices down, yet prices were still elevated. It also noted a three year high in May, when annual inflation reached 4.2%.
Core inflation, which excludes volatile energy and food, increased slightly to 2.5% year over year and rose 0.2% from the prior month, the outlet reported. The food and services index, including shelter, transportation and medical care, rose 3.0% each versus last year, with grocery prices down slightly.
Energy was mixed, with the energy index declining nearly 3.0% from the previous month as gasoline fell, but still about 15.0% higher than the year before. Brent crude dipped in June after a US Iran peace agreement, but prices rose again after that deal collapsed in July, while the latest efforts to reopen the Strait of Hormuz reached an impasse.
Latest closeWTI crude $91.10 ▲3.2%|Brent $103.93 ▲3.7%|Gasoline (RBOB) $3.156 ▼2.4%