New inflation data coming out on Wednesday is expected to show price growth easing slightly, even though recent re-escalations in the war with Iran have sparked oil price volatility. The closely watched Consumer Price Index is expected to rise 3.4% in July from a year ago, according to economists surveyed by Bloomberg, down slightly from June's 3.5% annual increase. On a monthly basis, economists expect a 0.1% gain from June, when prices saw a surprise 0.4% drop. Core inflation, which strips out volatile food and energy prices, is expected to be up 2.5% from a year ago, and 0.2% from June. Although recent inflation readings remain well above the Fed's 2% target, the US shed jobs last month.