CPI inflation in June was 3.5 percent, while analysts had expected 3.8 percent.
The Dow Jones industrial average fell 0.2 percent, while the broad S&P 500 index and tech-heavy Nasdaq Composite index rose 0.1 percent and 0.4 percent, respectively.
Oil prices continue to rise due to the tense situation in the Persian Gulf. A barrel of North Sea oil has risen 3.5 percent to $86.20.
Several major banks have released interim reports that exceeded analysts' expectations.
Shares in US IT consultancy IBM collapsed after the company issued a profit warning. The shares were down more than 25 percent after a few minutes of trading.
