An inflation measure closely monitored by the Federal Reserve showed a modest increase last month, indicating a continued trend of cooling price hikes. This development paves the way for the Fed to potentially lower its key interest rate next month for the first time in over four years. Prices inched up by 0.2% from June to July, slightly higher than the previous month's 0.1% rise. Year-on-year inflation held steady at 2.5%, just above the Fed's target of 2%.
The slowdown in inflation could impact previous attempts to attribute rising prices to specific individuals. Despite the easing of high inflation, many Americans remain concerned about the increased costs of essentials like gas, food, and housing compared to pre-pandemic levels.
