Annual inflation slowed for the second month in a row, cooling to 3.4% in July as prices at the pump delivered less of a bite, according to new data released Wednesday by the Bureau of Labor Statistics.
The latest Consumer Price Index showed that prices rose 0.1% on a monthly basis, in line with economists’ expectations.
The Iran war and its resulting energy shock and high uncertainty sent inflation to a three-year high earlier this year. Energy prices and inflation have eased as peace talks progressed in recent weeks – although negotiations remain bumpy.
Gas prices fell 2.9% in July from the month before, helping to keep a lid on inflation.
The slowdown in price increases could also ease pressure on the Federal Reserve to hike interest rates. Chairman Kevin Warsh has said the bank is committed to bringing down inflation, which has run above the 2% target for years.
