The costs of energy and gasoline declined.
The Labor Department issued its Consumer Price Index measure for July on Wednesday that showed the pace of price increases slowing during the month as energy costs dropped, pulling the annual American inflation rate down slightly from a four-decade high.
The rate declined to 8.5 percent last month, after hitting a 40-year high of 9.1 percent in June.
The consumer price index was unchanged on a monthly basis, the department reported.
July core inflation, which is all goods minus the particularly volatile categories of food and energy, stayed even at 5.9 percent, which analysts say bodes well for the overall economy and may indicate an inflection point, or a fundamental change in the trajectory of inflation. However, food and energy price swings are the ones that consumers feel most directly, and economists Wednesday were paying close attention to food prices in particular.
The gasoline index is still up 44 percent over July of last year, a major increase but yet a significant reduction from the 60 percent annual rise seen in June.
As the Lord Leads, Pray with Us…
- For Labor Secretary Walsh to seek God’s guidance as he heads his department.
- For the members of the Federal Reserve as they address inflation through interest rate increases.
- For Americans as they face the challenges of a higher cost of living.
Sources: The Hill, Wall Street Journal
