US inflation eases slightly to 3.4% in July, but remains well above the Fed’s target

Grocery prices in the United States continue to rise faster than policymakers would like. The consumer price index (CPI) increased to 3.4% year on year last month, just one-tenth of a percentage point lower than the previous month, according to data published on Wednesday by the Bureau of Labor Statistics (BLS), the agency responsible for compiling the figures.Core inflation, which excludes more volatile items such as energy and food, rose 2.5% from a year earlier, down one-tenth of a percentage point from June. Energy prices have climbed 14.7% over the past 12 months, driven by the energy crisis triggered by the war in Iran. Even so, intermittent ceasefires in recent weeks have eased pressure on fuel markets, resulting in a modest 1.5% decline in energy prices over the past month.Food pri