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Good morning from the Financial Times. Today is Friday, August 11, and this is your FT News Briefing.

The US and Iran have struck a deal to move American prisoners to house arrest,

and US inflation is up just a smidge, but overall things look good.

Plus, Mexico's military is becoming more and more influential in the country.

So they've got this enormous kind of empire that's growing almost by the month and controlling

more and more money. I'm Sonya Hudson in for Mark Filipino, and here's the news you need to start your day.

Iran has transferred five US citizens from a notorious prison to house arrest.

This is the first step in a deal that Washington hopes will end with the prisoners returning home.

In exchange, the US would release $6 billion in Iranian oil revenue.

It's currently frozen in South Korea. This breakthrough could help mend the relationship

between the US and Iran. It's been strained ever since former President Donald Trump pulled out

of the nuclear accord. Talks to revive the deal started up again this year,

and diplomats are hopeful this latest development will create momentum in those talks.

US inflation went up slightly last month. Government data that came out yesterday showed

prices rose by 3.2% in July. That's up from 3% in June. I'm joined now by the FT's Kate

She covers US capital markets. Hi Kate. Hi. So inflation was falling and now it's back up a little bit.

What happened? The most important thing to take away from this inflation report is that it was

really good. It showed a lot of progress on inflation in the US despite the slight tick up

in the headline number. There is the headline annual inflation number, which is like what we all

pay attention to when you say 3.2%. That's that number. There's also the month-over-month increase.

And then there's what we call core inflation, which strips out energy, food, some of the more

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