July inflation decreased, proving Fed rate rises are working

July inflation decreased, proving Fed rate rises are working

Inflation decreased in July as gasoline prices fell, a sign the Fed’s attempts to control prices are working.

The Labor Department said Wednesday that consumer prices grew 8.5% from a year earlier in August, lower than anticipated and down from 9.1% in July.

The price hike shows customers’ anguish. Food and housing prices rose last month, while energy expenses fell.