July inflation eases to 3.4% – likely keeping the Fed split on interest rates for now

See more of our coverage in your search results. Add The New York Post on Google Inflation eased slightly in July, likely bolstering arguments from Fed officials that want to keep interest rates on hold – though tensions with Iran have since reheated, meaning energy prices could drive that figure higher again. The Consumer Price Index rose 3.4% in July over the past 12 months, cooling slightly from 3.5% in June, the Bureau of Labor Statistics said Wednesday. Core CPI – which excludes volatile food and energy prices – ticked down to 2.5% from 2.6% the previous month, still stubbornly above central bankers’ 2% goal. The Consumer Price Index rose 3.4% in July over the past 12 months, cooling slightly from 3.5% in June, the Bureau of Labor Statistics said Wednesday. USA TODAY Network via Reuters Connect It’s a critical economic reading for the Federal Reserve, after last week’s surprisingly weak labor report gave them reason to hold interest rates in the key 3.5% to 3.75% range. Any indication that inflation is heating up could convince them to hike rates by a quarter point, a position several Fed officials have already backed. Though July’s report showed inflation is slowing from stunning heights above 4% in the spring, consumers are still feeling the pressure as prices outpace wage growth, which rose just 3.2% last month. This is a developing story. Please check back for updates.