U.S. consumer inflation edged higher during July as shelter and food costs rose, though another decline in gasoline prices kept the monthly increase modest.

Data released Aug. 12 by the Labor Department showed that its Consumer Price Index increased 0.1% from June after declining 0.4% during the previous month. Consumer prices increased 3.4% year-over-year, down from June’s 3.5% pace and matching economists’ expectations.

The shelter index rose 0.1% and accounted for roughly two-thirds of the monthly increase in the all-items index. Food prices also increased 0.1%, as a 0.3% rise for food away from home offset a 0.1% decline for food at home.

Energy prices decreased 1.5% after falling 5.7% in June. Gasoline prices declined 2.9% during July, while fuel oil prices fell 1.7%. Conversely, natural gas prices increased 0.7% and electricity prices rose 0.1%.

Despite the monthly retreat, energy prices remained 14.7% higher than a year earlier, including a 24.6% annual increase for gasoline and a 39.1% jump for fuel oil.

Meanwhile, core inflation, which excludes volatile food and energy categories, increased 0.2% month-over-month after being unchanged in June. Core prices rose 2.5% year-over-year, easing from June’s 2.6% pace and reaching their lowest annual rate since early 2021.

Monthly increases were recorded for medical care, airline fares, communication, education, recreation and used vehicles. Airline fares jumped 2.2%, while medical care prices increased 0.4%. Motor vehicle insurance prices declined 0.3%.

Shelter prices rose 3.2% year-over-year, while the food index increased 3.0%. Airline fares remained a notable source of annual inflation with a 25.5% increase, while motor vehicle maintenance and repair prices rose 6.6%.

July’s Producer Price Index report is set for release Aug. 13.