Inflation Hits Three-Year Low: Signs of Economic Stability Emerge

Inflation has decreased to its lowest level in over three years, potentially paving the way for the Federal Reserve to cut interest rates in September. Consumer prices increased by only 0.2% from June to July, reflecting easing rental and housing costs. Inflation plays a central role in the upcoming presidential election, with significant political implications.

Inflation has reached its lowest level in over three years, setting the stage for the Federal Reserve to potentially cut interest rates in September. The Labor Department's latest report showed a 0.2% increase in consumer prices from June to July, with a year-over-year rise of 2.9%, the mildest since March 2021.

Former President Donald Trump has blamed the Biden administration's energy policies for the previous price hikes, while Vice President Kamala Harris plans to introduce new proposals aimed at reducing costs and strengthening the economy.

The recent inflation report indicates that higher rental and housing costs were primary drivers in July. However, grocery prices rose by just 0.1%, and gas prices remained unchanged from June. Notably, used car prices, which had soared during the pandemic, have dropped by nearly 11% over the past year.

(With inputs from agencies.)