CSB News USA

CSB News USA · 10:01 AM

U.S. inflation slowed slightly last month as gasoline and grocery prices declined, but overall prices are still rising faster than they were before the Iran war. The situation poses a challenge for the White House as the midterm elections approach

U.S. inflation slowed slightly last month as gasoline and grocery prices declined, but overall prices are still rising faster than they were before the Iran war. The situation poses a challenge for the White House as the midterm elections approach. The Labor Department reported Wednesday that consumer prices increased 3.4% in July from a year earlier, down slightly from 3.5% in June. On a monthly basis, prices rose just 0.1% from June to July. Inflation had fallen to 2.4% before the Iran war. However, sharply higher gasoline prices pushed inflation to 4.2% in May, the highest level in three years. Excluding volatile food and energy prices, core inflation declined to 2.5% in July, from 2.6% in June. July's figure matched the post-pandemic low recorded in January and February. Economists say the slowdown in inflation could provide some relief to the Federal Reserve, potentially reducing pressure to raise interest rates. Fed officials remain divided over their next steps. However, the situation is far from comfortable. Gasoline prices have risen again since…

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