US prices rose 3.4% in the year to July, slightly lower than the 3.5% in the year to June, new figures show. Month to month, inflation rose 0.1%, mainly due to an increase in housing costs, the Bureau of Labor Statistics said. Food prices rose only slightly in July and at a slower rate than in June, while energy prices fell, offering some relief for consumers. While inflation was slightly lower in July compared to June, that means prices are rising at a slower pace, not that prices overall are falling. Recent labour market concerns have also softened expectations for a rate increase, after July's report showed a loss of jobs.