US Inflation Falls for the Second Month in a Row to 3.4%

Annual inflation slowed for the second month in a row, cooling to 3.4% in July, according to the latest Consumer Price Index (CPI) data. The Consumer Price Index for July showed prices rose 0.1 percent in July from a month prior, in line with analysts’ expectations.

The United States is riding five consecutive years of high inflation since the peak of the COVID-19 pandemic. Additionally, inflation is just two months fresh off a report that saw it reach a three-year high. Hence, analysts aren’t too relieved after the latest report, as there is still a long way to go to reach pre-pandemic inflation numbers.

Indeed, monthly economic data can be quite volatile, and that’s especially been true in the past two years. Prices–particularly energy and gas prices – have been sporadic because of a months-long war in Iran. Those prices, as well as inflation, have eased in recent weeks as some peace talks appeared to progress. However, those negotiations remain quite choppy; plus, plenty of inflationary risks are in the pipeline as higher oil and fertilizer prices work their way through the economy in the coming months.

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