Inflation rises 3.4% in July as prices continue to climb

U.S. consumer prices increased in July with inflation up 3.4% over the past year, according to the U.S. Bureau of Labor Statistics. The Consumer Price Index for All Urban Consumers rose 0.1% in July on a seasonally adjusted basis, following a 0.4% drop in June. Over the 12 months ending in July, the all-items index climbed 3.4%, down slightly from 3.5% in June. The monthly gain was driven mainly by shelter, up 0.1% and accounting for about two-thirds of the increase. Food rose 0.1%, while energy fell 1.5%. Core CPI excluding food and energy increased 0.2% in July after holding steady in June.