Inflation dipped to 8.5% in July but remains near 40-year high

The inflation news is a little bit good only because it was so bad last month.

From CNBC:

Inflation reached 8.5% in July, compared with a 40-year high of 9.1% in June, providing a measure of relief to consumers as gas prices fall. Economists surveyed by The Wall Street Journal had projected inflation in July to fall to 8.7%. 

On a month-to-month basis, the July Consumer Price Index reading was unchanged from June — meaning no price growth was registered. That compares with June's month-on-month increase of 1.3%. One key force driving inflation has been the price of gasoline. But last month, prices fell 7.7%, the Bureau of Labor Statistics said. While gas prices are still up 44% from a year earlier, the recent, multiweek decline helped cool off overall price growth in the economy. 

As of Wednesday, the national average price was $4.01 per gallon, according to AAA — about a dollar less than it was in June.