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U.S. inflation cooled in July as gas prices fell but costs still high

U.S. inflation slowed last month and a measure of underlying price pressures also cooled, as higher oil and gas prices had a limited impact on broader costs in the economy.

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Why it matters

Moderating inflation may influence the Federal Reserve's decisions on interest rates, which affect borrowing costs across mortgages, loans and savings accounts for households.

Most affected

Households with variable-rate debt and savers — Slower inflation could shift Fed policy toward rate cuts, lowering borrowing costs or increasing savings returns.
Consumers paying for goods and services — Cooling inflation means prices are rising more slowly than they were, though absolute price levels remain elevated.

Watch next

Whether the Federal Reserve signals a change in its interest rate policy at its next meeting or statement.

Read it at Global News