The Consumer Price Index rose 0.1% in July, bringing the annual inflation rate to 3.4%, down slightly from 3.5% in June, according to the Bureau of Labor Statistics. Core inflation, excluding food and energy, rose 0.2%, matching economist expectations.
Energy prices remained a significant driver, up 14.7% year-over-year, largely due to a 24.6% jump in gasoline prices tied to ongoing Middle East tensions. The national average gas price stood at $4.04 a gallon, compared with about $3.14 a year earlier. Stocks moved modestly higher following the report, with the Nasdaq up about 0.6%.