WASHINGTON — U.S. consumer inflation eased slightly in July, with prices rising 3.4% from a year earlier as lower energy costs helped offset continued increases in shelter and other services, the Bureau of Labor Statistics reported on Wednesday.
The annual increase in the Consumer Price Index followed a 3.5% rise in June, marking a second consecutive month of moderation. On a monthly basis, consumer prices increased 0.1% in July after falling 0.4% in June, according to the BLS.
The data showed that underlying price pressures remained relatively contained. The index for all items excluding food and energy rose 0.2% in July and was up 2.5% from a year earlier, compared with a 2.6% annual increase in June.
Energy prices fell 1.5% in July from the previous month, with gasoline prices down 2.9%. Despite the monthly decline, the energy index remained 14.7% higher than a year earlier, the BLS said.
Shelter costs, one of the largest components of the consumer price index, rose 0.1% in July. The shelter index was up 3.2% from a year earlier, while rent of primary residence increased 0.3% over the month.
Food prices rose 0.1% in July. Food consumed away from home increased 0.3%, while prices for food purchased for consumption at home edged down 0.1%.
The July inflation figures were broadly in line with expectations, according to market forecasts cited by economists. The moderation in headline and core inflation may ease some pressure on the Federal Reserve as policymakers assess the path of interest rates, although inflation remains above the central bank's 2% longer-run objective.
The figures also showed uneven price movements across the economy. Airline fares increased 2.2% in July, while medical care services rose 0.6%. Motor vehicle insurance prices fell 0.3%, continuing a decline that left the category 4.5% below its level a year earlier.
The BLS is scheduled to release its July producer price data on Thursday, providing another measure of inflationary pressures before the Federal Reserve's next policy meeting.
The July CPI report is the latest official reading on consumer prices and will form part of the data available to policymakers as they evaluate economic conditions and the outlook for inflation.
