# US inflation eases to 3.4% in July, retail spending drops 0.6% 2026-08-15T19:56:00+00:00 | World & Diplomacy | Indian Opinion Desk Corroboration: 1 independent outlet Inflation in the United States slowed to 3.4% in July from 3.5% in June, the Labor Department reported. The Economic Times, citing The Associated Press, said core price pressures tempered, suggesting higher oil and gas prices due to the Iran war had limited impact on the broader economy. On a monthly basis, prices rose just 0.1% from June to July. However, inflation remains above the 2.4% level before the Iran war began in February. Retail spending dropped 0.6% in July, the biggest fall since May 2025. The Commerce Department data cited by AP showed the decline follows a revised 0.2% gain in June. Americans had unexpectedly reduced spending as the boost from government tax refunds faded. Sales excluding gas stations and auto dealers fell 0.2%. Existing-home sales dipped 1.7% in July to a seasonally adjusted annual rate of 4.06 million units. The National Association of Realtors said median home prices hit a record $434,100, up 2% year-over-year. Wholesale inflation eased to 4.7% year-over-year in July from 5.5% in June. Weekly jobless claims rose to 209,000 but remain near historically low levels. The Federal Reserve kept its key rate unchanged at 3.6% last month, with a 9-3 vote. ## Coverage - economictimes.indiatimes.com This story was synthesised by AI from the source linked above. Tags: Federal Reserve, Iran war, National Association of Realtors, United States, US Labor Department Canonical: https://indianopinion.org/us-inflation-eases-to-3-4-in-july-retail-spending-drops-0-6/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/us-inflation-eases-to-3-4-in-july-retail-spending-drops-0-6/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/