US core consumer prices rose 0.2% in July from the prior month and increased 2.5% from a year earlier, matching the slowest pace since March 2021. Headline CPI climbed 0.1% on the month and 3.4% year on year. Gasoline briefly moved back above $4 a gallon in July, but the month’s average remained below June while hotel and motel rates fell 3.3% and rent measures both rose 0.3%. The figures eased pressure on the Federal Reserve to keep tightening policy.

During the Independence Day holiday period, the national average gasoline price is $3.84 a gallon, nearly $1 higher than pre-war levels that were under $3. Crude has retreated toward its pre-war range, but pump prices have stayed elevated amid a tight fuel supply picture, low inventories and lagging contract repricing tied to refinery output shifts toward jet fuel and diesel. AAA forecasts 61.4 million people will travel by car, the second-largest driving period of the year after Thanksgiving.

U.S. gasoline prices fell by an average 49 cents per gallon over the past month, but President Donald Trump said the decline is not keeping pace with the drop in crude oil. WTI fell 27% over the same period to $70.45 a barrel, while the national average price of regular gasoline slid 13% to about $3.93 a gallon, according to AAA. Analysts say pump prices typically trail oil moves by weeks because of refinery purchasing, inventories, seasonal fuel changes and distribution logistics. The report described the pullback as a temporary easing in an existing geopolitical conflict, without citing new military action or tougher sanctions.

The article says the Iran war that began on Feb. 28 pushed up gasoline prices and lifted U.S. inflation to a three-year high of 4.2%, raising the likelihood the Federal Reserve will keep interest rates unchanged or even shift toward hikes. It adds that while Trump has announced an initial peace agreement, the durability of any ceasefire remains uncertain. The piece notes that energy-price pass-through can lag, even if conditions in oil markets ease.

After an agreement ending the Iran war was announced, the Strait of Hormuz has reopened to shipping, but oil tankers stranded in the Persian Gulf for more than three months and shut-in oilfields could take months to restart. Experts said insurance availability, the need for a clear security window, and the time required for transport and refining will limit any near-term recovery in supply, according to AP. Brent fell to $83.89 a barrel and WTI to $80.85, still well above the roughly $70 level before the war.