US Inflation Eases to 3.4% in July, Offering Fed Breathing Room

Annual US inflation dipped to 3.4% in July, according to the latest Consumer Price Index report, with food and fuel costs cooling. Housing costs remained a slight upward pressure, but the overall data provided a reprieve to the Federal Reserve as it weighs whether to raise rates further. The report reinforced the patient approach adopted by many Fed officials, though it has not fully resolved the debate over future policy moves.