US consumer inflation falls to 3.4% year-on-year in July
U.S. consumer inflation slowed slightly to 3.4 percent in July despite turbulent oil prices due to the Iran war, government data showed, with the data likely giving the Federal Reserve room to breathe on interest rates.
The consumer price index (CPI) rose 0.1 percent from a month earlier, but fell on a year-on-year basis, according to data released by the U.S. Bureau of Labor Statistics. The data was in line with analyst expectations.
12 August 2026, 20:49
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Economists ("there are a lot of economists") are divided as to why the massive budget deficits of the US government are not fueling inflation. Now that I state that problem, it indicates that you can flood the banking system with dollar bills but if people don't want to spend, there's nothing you can do. Economic activity is like all human activity. People do what they want. Generally speaking, people are not stupid.
