Year-over-year inflation has reached its lowest level in more than three years in July, the latest sign that the worst price spike in four decades is fading and setting up the United States Federal Reserve for an interest rate cut in September.
Wednesday’s report from the US Department of Labor showed that consumer prices rose just 0.2 percent from June to July after dropping slightly the previous month for the first time in four years. Measured from a year earlier, prices rose 2.9 percent, down from 3 percent in June. It was the mildest year-over-year inflation figure since March 2021.
