Consumer prices increased 0.1 percent from June to July, while the annual inflation rate edged lower to 3.4 percent, according to figures released by the Bureau of Labor Statistics on Wednesday. 

Core inflation, which excludes food and energy prices, was 0.2 percent in July with the annual figure at 2.5 percent.

While energy prices dropped 1.5 percent in July, the costs of both food and shelter rose 0.1 percent each. On an annual basis, however, energy costs in July were up 14.7 percent.

Moody’s chief credit officer warned that the Iran War could still cause prices to surge, with energy remaining “the wild card.”