Inflation was benign in July, a second month of relief for American consumers and economic policymakers contending with stubborn price pressures.
But the encouraging inflation picture may already be out of date, with the data largely capturing prices before renewed Middle East fighting sent energy costs notably higher.
Why it matters: The tame reading might give the Federal Reserve some breathing room to hold off raising interest rates in September. Still, the Iran war and the whiplash in energy prices it has unleashed leave lingering questions about the staying power of the inflation relief.
The state of the global diesel market is getting even more precarious as the Russia-Ukraine war and the Iran crisis squeeze supply from multiple angles.
Why it matters: Diesel prices ripple through economies here and abroad, affecting shipping costs, construction and plenty in between.
Inflation eased in July from a year earlier, with prices inching up slightly from the previous month after falling sharply in June, the Labor Department said Wednesday.
Why it matters: It is the first inflation report since fighting with Iran resumed in early July, though the data suggests inflation had yet to pick back up amid the renewed conflict.
Move over, data centers. AI's climate impact may extend well beyond the electricity it consumes.
Why it matters: A new peer-reviewed study finds AI could help produce more oil and natural gas — and produce a climate impact the authors argue could far outweigh the technology's benefits for renewable energy.
