AP: Inflation Eases as Consumer Prices Rise 6.3% in July

WASHINGTON — Inflation eased last month as energy prices tumbled, raising hopes that a surge in prices increases may have peaked, according to an Associated Press report.

According to Commerce Department report Friday that is closely watched by the Federal Reserve, consumer prices rose 6.3% in July from a year earlier after posting an annual increase of 6.8% in June, biggest jump since 1982. Energy prices made the difference in July: They dropped last month after surging in June.

So-called core inflation, which excludes volatile food and energy prices, rose 4.6% last month from a year earlier after rising 4.8% in June. The drop — along with a reduction in the Labor Department’s consumer price index last month — suggests that inflationary pressures may be starting to ease.

On a monthly basis, consumer prices actually fell 0.1% from June to July; core inflation blipped up 0.1%, the Commerce Department reported.

Inflation started rising sharply in the spring of 2021 as the economy rebounded with surprising speed from the short but devastating coronavirus recession a year earlier. Surging customer orders overwhelmed factories, ports and freightyards, leading to delays, shortages and higher prices. Inflation is a worldwide problem, especially since the Russian invasion of Ukraine drove up global food and energy prices.

Read the full Associated Press report.

Source: https://rvbusiness.com/ap-inflation-eases-as-consumer-prices-rise-6-3-in-july/