US inflation cools to 8.5% in July

Slowdown due to lower fuel prices

US inflation rose 8.5% in the year through July, cooling off from the four-decade high of 9.1% in June on the back of lower fuel prices.

The latest US consumer price index, released by the Bureau of Labor Statistics today (10 August), fell below economists' expectations of a 8.7% print.  The slowdown in the inflation rate was mainly due to a drop in fuel prices. The gasoline index fell 7.7% in last month and offset increases in the food and rent indexes, resulting in the CPI being unchanged over the month, compared to a 1.3% monthly increase from June to July.  The energy index fell 4.6% as the indexes for fuel and natural gas declined, but the index for electricity increased. The food index continued to rise, increasi...