U.S. inflation slows down to 8.5% in July
The U.S. Consumer Price Index (CPI) increased 8.5 percent year-on-year in July, a slower annual increase compared to June, as inflationary pressures eased on the back of lower petrol prices.
CPI’s data released on Wednesday showed no increase between June and July, compared to a 1.3 per cent monthly increase recorded a month ago.
Moreover, the CPI had decelerated from 9.1 percent increase in June, according to Labor Department data.
It reflecting lower energy prices, which may take some pressure off the Federal Reserve to continue aggressively hiking interest rates.
Moreover, CPI that strips out the more volatile food and energy components, increased 0.3 percent from June and 5.9 percent from a year ago.
The annual inflation remains high at more than 8 percent and food costs continue to rise, providing little relief for President Joe Biden and the Democrats ahead of midterm elections.