economy
US inflation cooled slightly to 3.4% in July but prices still elevated
Energy is cheaper than at its peak in late April, but gas is still nearly $1 a gallon more expensive than before the Iran war
TL;DR
- US consumer prices cooled to 3.4% annualized inflation in July.
- Prices remain higher than pre-war levels.
- Core inflation increased slightly to 2.5% year-over-year.
- Food and services indices rose 3% year-over-year, but grocery prices fell.
- Energy index declined from the previous month, with gasoline down nearly 3%, but still up 15% from the year before.
- Negotiations to end the war in the Middle East have reached an impasse.
- US employers unexpectedly lost 23,000 jobs in July.
- Wage gains for hourly employees were erased by inflation, decreasing by 0.2%.
- The Federal Reserve is considering interest rate hikes to combat inflation.
- Some Fed officials are pushing for rate hikes, citing persistent above-target inflation.