Year-on-year inflation (yoy) hit its lowest level in more than three years in July, the latest sign that the worst price surge in 40 years is easing. That has the central bank poised to cut interest rates in September.
A report Wednesday from the U.S. Labor Department showed prices for consumer goods rose just 0.2 percent from June to July, but fell slightly in June for the first time in four years.
Compared with a year earlier, prices rose just 2.9 percent, down slightly from 3 percent in June. That was the lowest year-on-year inflation figure since March 2021.
In July, food prices rose 0.1 percent, just 1.1 percent higher than a year earlier, a much slower pace of inflation growth than in previous years.
But many Americans are still struggling with grocery prices, which are still 21 percent higher than they were three years ago, even though average wages have risen sharply since then.
Inflation has played a major role in the U.S. presidential election. Former President Donald Trump blamed the Biden administration’s energy policies for rising prices. Vice President Kamala Harris said Saturday she would soon introduce new proposals to “lower costs and strengthen the economy as a whole.”
The government said almost all of the rise in monthly inflation reflected higher rents and other housing costs. (ps/jm)
