US consumer inflation eased in July, with prices rising 3.4% from a year earlier — a smaller annual increase than in May or June. The slowdown was driven partly by falling gasoline and grocery prices, and it makes it less likely the Federal Reserve will raise interest rates in September.
Energy prices declined 1.5% in July from the previous month, though they remain 14.7% higher than a year ago. A measure of underlying price pressures also cooled last month. Higher oil and gas prices had only a limited impact on broader costs in the economy, according to reports.
The July data suggests inflation is continuing to ease, although costs remain elevated compared with a year ago.