Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsEconomyU.S. consumer inflation slows in July, giving Fed room to breatheConsumer inflation came in at 2.4 percent in February, before spiking to a three-year high of 4.2 percent in MayAuthor of the article:Last updated 48 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.In July, energy prices continued to lead the line in terms of price increases, with gasoline prices — a sensitive political issue — up 24.6 percent from a year ago. Photo by Brandon Bell/Getty ImagesUnited States consumer inflation slowed slightly to 3.4 per cent in July despite turbulent oil prices due to the Iran war, government data showed, with the figures likely giving the Federal Reserve room to breathe on interest rates.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe consumer price index (CPI) rose 0.1 per cent from a month earlier, but fell on a year-on-year basis, according to data released by the U.S. Bureau of Labor Statistics on Wednesday.July’s consumer inflation figures were in line with the expectations of economists polled by Dow Jones Newswires and the Wall Street Journal.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againU.S. households have been battered by more than five years of elevated prices since the pandemic hit, and the July data is still well above the Federal Reserve’s long-term two-per cent target.Still, with last month’s inflation data also showing some easing in prices, the latest reading may give the central bank some room to manoeuvre ahead of potential rate hikes.U.S. President Donald Trump’s Republicans are facing a stern test in upcoming midterm elections, with Democrats seeking to wrest control of Congress over his handling of the world’s largest economy.Inflation has surged since Trump launched the war on Iran in late February, with Tehran’s retaliatory action virtually blocking the critical Strait of Hormuz through which a fifth of global energy supplies normally transit.Consumer inflation came in at 2.4 per cent in February, before spiking to a three-year high of 4.2 percent in May.In July, energy prices continued to lead the line in terms of price increases, with gasoline prices — a sensitive political issue — up 24.6 per cent from a year ago.Fuel oil, used by households for heating and in various industrial applications, was up 39.1 per cent from the year before.Still, the energy index overall was 1.5 per cent lower than a month ago, indicating a downward trajectory for prices of those commodities as talks to end the war continue.Core CPI, which excludes volatile food and energy prices, rose 2.5 per cent from a year ago. 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