Inflation in the U.S. reached its lowest point in more than three years, as the overall inflation was 2.9 percent in July.
According to a report released by the U.S. Labor Department on Wednesday, consumer prices increased by just 0.2 percent from June to July, following a slight decrease the previous month for the first time in four years. Year-over-year, prices climbed by 2.9 percent, down from 3 percent in June, marking the mildest annual inflation rate since March 2021.
Context
Inflation remains a top concern among Americans as it reflects a loss of purchasing power as prices for goods and services rise over time. When the inflation rate is high, it suggests that prices are rising rapidly, often having an immediate impact on personal finances.
What We Know
The Consumer Price Index rose 2.9 percent in the 12 months through July.
According to the Associated Press (AP), the news is expected to set the stage for the Federal Reserve to consider cutting interest rates as early as September.
This is a developing story and will be updated as more information becomes available.
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