US inflation eased slightly in July, as slower food price rises and lower energy costs offset higher housing costs. The figures matter because they offer some relief for households while showing that rent and other living costs remain a significant pressure.

Consumer prices rose 3.4% over the year to July, down from 3.5% in June, while prices increased 0.1% during the month. Excluding food and energy, prices rose 0.2%, driven partly by medical care and airline fares; car insurance continued to fall. Federal Reserve chair Kevin Warsh said the priority was to reduce inflation without unnecessarily disrupting the economy.