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 US consumer prices cooled slightly in July as the annualized inflation rate dipped down to 3.4%, though prices still remain higher than levels seen before the war with Iran. Though inflation decreased 0.7 percentage points in June during a brief ceasefire between the US and Iran that brought energy prices down, consumer prices have remained elevated. Price increases hit a three-year high in May, with annual inflation reaching 4.2%. Core inflation – a key measure that excludes volatile energy and food prices – increased slightly to 2.5% compared with last year, and increased at a modest 0.2% since last month. The overall index for food and services, including shelter, transportation and medical care, rose 3% each compared with last year, though grocery prices fell slightly. The price of lettuce fell 16% over the last year as it continues to be linked to the cyclosporiasis outbreak. The energy index declined slightly from the previous month, with gasoline falling nearly 3% over the last month, but still sitting about 15% higher than the year before. Brent crud