US Inflation Subdued, Easing Pressure on Fed to Hike Rates

The government in the United States keeps track of how much everyday things cost, like food, gas, and rent.

In July, prices went up just a little bit — 0.1% from June, and 3.4% compared with a year before.

That means things are not getting more expensive as fast as they used to.

Gas and energy prices went down for the second month in a row.

Grocery prices also went down for the first time since March, including cheaper lettuce and ground beef.

Some things still got more expensive, like computer software, which jumped 21.2% from a year earlier.

A group called the Federal Reserve decides whether to make borrowing money more costly to slow down price increases.

Because inflation is calming down, the Fed feels less pressure to raise those borrowing costs at its September meeting.

However, some experts say a rate hike is still possible.

Slower price rises are good news for families, because their money can go a bit further.