Inflation in US slows down for first time since April

The US inflation eased slightly but remained close to a four-decade high in July despite cooling energy prices, Report informs referring to the Wall Street Journal.

The Labor Department on August 10 reported that the consumer-price index rose 8.5% in July from the same month a year ago, down from 9.1% in June. June marked the fastest pace of inflation since November 1981. The CPI measures what consumers pay for goods and services.

Core CPI, which excludes often volatile energy and food prices, held steady in July, increasing 5.9% from the same month a year ago, a sign that broad price pressures remain in the economy.

On a monthly basis, the CPI was flat in July after rising 1.3% the prior month, the result of falling energy prices such as gasoline. The core-price index climbed 0.3% last month, down sharply from June’s 0.7% gain, but slightly higher than the average monthly gain of 0.2% in the two years before the pandemic.

Price pressures eased across energy categories, with gasoline down 7.7% in July from the prior month. Used car prices, up sharply earlier in the pandemic, also dropped on a month-to-month basis, as did airline fares and apparel. Grocery prices were up 1.3% in July from the prior month and rose 13.1% in July from a year ago, the fastest annual pace since 1979. Dining out costs also rose.