WASHINGTON (AP) — Inflation eased last month as energy prices tumbled, raising hopes that the surging costs of everything from gasoline to food may have peaked.
According to a Commerce Department report Friday that is closely watched by the Federal Reserve, consumer prices rose 6.3% in July from a year earlier after posting an annual increase of 6.8% in June, the biggest jump since 1982.
Energy prices made the difference in July: They dropped last month after surging in June.
Yet on Friday at the Federal Reserve’s annual economic symposium in Jackson Hole, Chair Jerome Powell delivered a stark message: The Fed will likely impose more large interest rate hikes in coming months and is resolutely focused on taming inflation.
