A fall in gasoline prices led to easing inflation, with prices of goods and services rising 8.5% from a year ago in July, lower than expected. Aneta Markowska, the chief economist at Jefferies, said, “This is the most encouraging report we’ve had in quite some time.”
U.S. retail sales remained unchanged in July, as the high inflation and fear of rate hikes led consumers to spend cautiously. However, there were some positive signs. Excluding auto and auto parts, retail sales rose 0.4% in July. Moreover, compared with 12 months ago, overall retail sales were up 10.3% in July.
