Oil swings tied to Iran conflict seen having mild effect on July inflation

Volatile oil trading linked to the war with Iran is expected to remain an important factor in monthly inflation data, though analysts see only a modest impact on July's reading. Oil prices briefly climbed above $100 a barrel in July, then fell to the low $80s before edging higher again late in the month. Because crude averaged a lower price in July than in June, analysts expect gasoline prices to help produce a slightly cooler inflation print when the latest report is released Wednesday morning. The moves highlight how energy costs can quickly feed into headline inflation, with higher prices lifting overall inflation in May and falling prices helping to ease it in June.

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