US inflation cooled again but still outpaced paychecks in July

US inflation cooled slightly to 3.4% in July, although consumer prices remain higher than levels recorded before the war with Iran. While energy costs are lower than their April peak, gasoline remains nearly $1 per gallon more expensive than pre-conflict rates. Annual inflation previously hit a three-year high of 4.2% in May. The decline in core CPI may now prompt the Federal Reserve to consider rate cuts, potentially impacting market dynamics and overall economic growth.