US inflation cools to 3.4% in July as gasoline prices retreat from recent highs

The US consumer price index moderated to a 3.4% annual rate in July, down from 3.5% in June and in line with economists' forecasts. Core inflation, which excludes food and energy, also eased to 2.5%. The deceleration was aided by a drop in gasoline prices to an average of $4.09 per gallon, after peaking at $4.65 in May amid geopolitical tensions.