US July CPI eased to 3.4% YoY from 3.5% in June, the Bureau of Labor Statistics said on Wednesday, matching economists' expectations. Core CPI (ex-food and energy) fell to 2.5% YoY from 2.6%. The moderation was driven largely by lower energy prices; gasoline was 2.9% lower in July versus June despite a sharp late‑July spike linked to tensions with Iran. Knock‑on effects from Trump’s war on Iran continue to hit the US economy. The report arrives as markets press the Fed to raise rates to counter

US July CPI eased to 3.4% YoY from 3.5% in June, the Bureau of Labor Statistics said on Wednesday, matching economists' expectations. Core CPI (ex-food and energy) fell to 2.5% YoY from 2.6%. The moderation was driven largely by lower energy prices; gasoline was 2.9% lower in July versus June despite a sharp late‑July spike linked to tensions with Iran. Knock‑on effects from Trump’s war on Iran continue to hit the US economy. The report arrives as markets press the Fed to raise rates to counter inflation risks from war‑related energy supply disruptions, alongside tariff impacts and price pressures associated with an AI boom.