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In July, the U.S. CPI inflation rate slightly decreased to 3.4%, primarily driven by a decline in gasoline prices. At the same time, the cascading effects of Trumps war on Iran continue to impact the U.S. economy. According to the Consumer Price Index data released by the Bureau of Labor Statistics on Wednesday, the year-on-year growth of the CPI fell from 3.5% in June to 3.4% in July, in line with economists' expectations. The core inflation rate, which strips out volatile food and energy prices, decreased from 2.6% to 2.5%. The cooling of inflation was mainly driven by a further drop in energy prices. Although gasoline prices at stations surged significantly in late July due to tensions with Iran, gasoline prices for the entire month of July still declined by 2.9% compared to June levels. As this data was released, the Federal Reserve was facing increasing pressure to raise interest rates. The market is demanding that the Federal Reserve curb a wave of inflation triggered by disrupted energy supplies from war, which is compounded by the price increases related to tariff policies and the artificial intelligence boom.