As rapid inflation continues to fuel recession fears, new data showed consumer prices rose 8.5% in the 12 months ending in July—falling for the first time since April in a potential sign that long-surging inflation may finally be slowing down.
Economists were expecting prices to rise 8.7% on an annual basis after they spiked 9.1% in June.
Overall prices rose 0.2% from June—matching economists expectations and much lower than the previous month’s increase of 1.3%, according to data released by the Labor Department on Wednesday.
Rising energy prices helped push inflation readings up to the highest level in decades during the pandemic, and stocks have struggled since the Federal Reserve started combating the surge in March by raising interest rates, which temper consumer demand by making borrowing more expensive. After rising 27% in 2021, the benchmark S&P 500 tumbled as much as 24% this year. Since mid-June, however, stocks have been on the mend—with the S&P climbing 12% as falling gas prices fuel hopes that the worst of the inflationary surge may be over.
This is a developing story. Please check back for updates.
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