Federal Reserve’s Favored Inflation Gauge Shows Price Pressures Easing as Rate Cuts Near

WASHINGTON (AP) — An inflation measure closely tracked by the Federal Reserve remained low last month, extending a trend of cooling price increases that clears the way for the Fed to start cutting its key interest rate next month for the first time in 4 1/2 years. Prices rose just 0.2% from June to July, up a tick from the previous month’s 0.1% increase. Compared with a year earlier, inflation was unchanged at 2.5%. The slowdown in inflation could upend Donald Trump’s efforts to saddle Vice President Kamala Harris with blame for rising prices. Still, despite the near-end of high inflation, many Americans remain unhappy with sharply higher average prices for such necessities as gas, food and housing compared with pre-pandemic levels.

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