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. But energy prices and inflation have eased as peace talks progressed in recent weeks – although negotiations remain bumpy.
And while US inflation is moving in a welcome direction, some cost-of-living concerns persist: The latest jobs report showed that Americans’ pay gains, at 3.2%, aren’t keeping up with the pace of price hikes.
“The economy isn’t out of the woods from the threat that inflation poses for everyday Americans, but price pressures aren’t hot to the touch either,” Christopher Rupkey, chief economist at FwdBonds, wrote in a note on Wednesday.
