US inflation slows again as gas and grocery prices fall in July

US inflation slowed for a second consecutive month in July as falling gas prices and easing grocery costs offered some relief to American households.

The Consumer Price Index rose 3.4 percent in the year to July, according to data released Wednesday by the US Bureau of Labor Statistics.

Prices increased 0.1 percent from June, matching economists' expectations, CNN reported.

Gas prices fell 2.9 percent during July, while grocery prices declined 0.1 percent. Annual grocery inflation stood at 2.7 percent below the overall inflation rate.

Housing costs also increased by just 0.1 percent, helped by falling prices for hotels, motels and other accommodation.

Core inflation, which excludes volatile food and energy prices, rose 0.2 percent during the month while the annual core inflation rate fell to 2.5 percent.

“The economy isn’t out of the woods from the threat that inflation poses for everyday Americans, but price pressures aren’t hot to the touch either,” Christopher Rupkey, chief economist at FwdBonds, wrote in a note cited by CNN.

Despite the improvement, Americans continue to face cost-of-living pressures. Recent jobs data showed wages growing by 3.2 percent slower than the headline inflation rate.