Inflation Eases As Consumer Prices Rise 6.3% In July, Down From June

Consumer prices were up 6.3% in July from a year earlier, down slightly from an annual 6.8% increase in June, according to the Commerce Department.

Inflation eased slightly last month as energy prices tumbled, raising hopes that the surging costs of everything from gasoline to food may have peaked.

According to a Commerce Department report Friday that is closely watched by the Federal Reserve, consumer prices rose 6.3% in July from a year earlier after posting an annual increase of 6.8% in June, the biggest jump since 1982. Energy prices made the difference in July: They dropped last month after surging in June.

So-called core inflation, which excludes volatile food and energy prices, rose 4.6% last month from a year earlier after rising 4.8% in June. The drop — along with a reduction in the Labor Department's consumer price index last month — suggests that inflationary pressures may be easing.