Annual US inflation eased to 3.4% in July, aligning with expectations and reinforcing signs of cooling price pressures.
US July consumer prices rose 0.1% month-over-month and 3.4% year-over-year, matching consensus forecasts and marking a slight decline from June’s 3.5% annual rate. Core CPI increased 0.2% for the month and 2.5% annually, the lowest since February, also in line with estimates.
Shelter costs remained a key driver, though details showed mixed signals in underlying inflation trends. The report follows a 10-year Treasury auction at a 4.683% yield, while crude oil futures settled at $83.27 amid a 17.423K build in weekly inventories.
Markets reacted with modest volatility, as the Dow closed lower while the NASDAQ advanced. Gold prices tested weekly highs, reflecting tempered expectations for further Fed rate hikes.