Annual inflation rate eases to 3.4% in July

The nation’s annual inflation rate eased slightly in July, with consumer prices rising 3.4% over the past 12 months, according to the U.S. Bureau of Labor Statistics.

The Consumer Price Index for All Urban Consumers increased 0.1% in July on a seasonally adjusted basis after declining 0.4% in June. The annual inflation rate was down from 3.5% for the 12 months ending in June.

Shelter costs increased 0.1% in July and accounted for roughly two-thirds of the overall monthly increase. Food prices also rose 0.1%, including a 0.3% increase in the cost of food away from home. Energy prices, meanwhile, fell 1.5% for the month.

Core inflation, which excludes the more volatile food and energy categories, increased 0.2% in July and was up 2.5% over the past year, down from 2.6% in June. Medical care, airline fares, communication, education and recreation costs increased during the month, while motor vehicle insurance was among the categories that declined.

Over the past 12 months, energy prices increased 14.7%, while food prices rose 3%. The latest figures show that while overall inflation remains elevated, the annual rate continued to moderate slightly in July.