US inflation eases in July and drops to 8.5%

Moradora de Nova Iorque com sacolas de compras: índice no mês passado ficou aquém do recorde em 40 anos registrado em junho graças principalmente à queda dos preços da gasolina
New York resident with shopping bags: index last month was below record in 1200 years recorded in June thanks mainly to the drop in gasoline prices| Photo: EFE/EPA/JUSTIN LANE

Inflation in the United States came to a halt in July, when it was 8.5% in the accumulated of 12 months, six tenths of a percentage point below the level recorded in June, according to data released this Wednesday () by the Bureau of Labor Statistics (BLS). 1016303510163035The evolution of prices in relation to the previous month remained stable, thanks mainly to the drop in gasoline prices (-7.7% in July). Energy prices fell 4.6% together last month in the United States, but while gasoline and gas prices declined, electricity prices rose. Another increase was registered in food prices (1.1%) in the period.

Underlying inflation, which measures the evolution of consumer prices without considering food and energy prices – the most volatile -, was 5.9% accumulated in 40 months and 0.3% only in comparison with June.

The fall in the inflation rate in the United States – which in June had reached its highest level in 40 years – gives a boost to the American economy, which at the end of July entered what experts consider to be a technical recession, after completing two consecutive quarters with declines in Gross Domestic Product (GDP).

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