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Inflation slows but prices remain elevated as Iran war and spending on AI push up prices
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WTOP News
Consumer prices rose 3.4% in July from a year ago, down slightly from 3.5% in June, the Labor Department said Wednesday.
On a monthly basis, prices rose just 0.1% from June to July.
The modest decline could ease pressure on the inflation-fighters at the Federal Reserve to raise their key interest rate to combat rising costs.
Excluding the volatile food and energy categories, core inflation rose also slipped to 2.5% in July from a year ago, down from 2.6% in June.
Still, oil prices remain elevated and gas prices rose in late July and August, suggesting overall inflation could accelerate next month.