Lower prices give slight reprieve

WASHINGTON - Gasoline, airline tickets and clothes’ prices gave Americans a brief reprieve from inflation in July, and overall price increases slowed from the 4-decade high in June. Consumer prices jumped 8.5% in July compared to the same month in 2021, the government said Aug. 9 - down from a 9.1% year-over-year increase in June. On a monthly basis, prices were unchanged through June, the first time after 25 months of increases. But this break offered no certainty that prices would stay on the decline. Inflation has slowed in the past only to re-accelerate in later months. If price increases continue to weaken, they are a long way from the Fed’s 2% annual target. If it were to fall to 4% one expert suggested the Federal Reserve would need to keep raising interest rates or at least keep them high. Travel-related prices helped lower core inflation, a measure that excludes food and energy. Core prices rose 0.3% from June, the smallest month-to-month increase since March. Grocery prices jumped 1.1% in July and are 13% higher than a year ago, the largest increase since 1979. The July figures raised hope inflation may have peaked after straining households, soured Americans on the economy, led the Federal Reserve to raise borrowing rates and diminished President Joe Biden’s public approval ratings. (Source: The AP 08/10/22) US inflation slips from 40-year peak but remains high 8.5% | AP News