US inflation drops to 8.5 percent in July as fuel prices dip 

US inflation drops to 8.5 percent in July as fuel prices dip 

US inflation eased slightly in July, official data showed Wednesday, taking pressure off the Federal Reserve to hike interest rates sharply while bringing a much-needed boost to President Joe Biden just months before crucial midterm elections.

With energy costs dropping in recent weeks, the CPI dipped to an annual rate of 8.5 percent last month, the Labor Department reported.

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Fueled by aggressive consumer spending of pandemic savings, global supply chain snarls, domestic worker shortages and Russia’s war on Ukraine, the consumer price index had soared 9.1 percent on-year in June, the highest in 40 years.

But July’s consumer price index was unchanged compared to the month before, well below a forecasted increase, while CPI excluding volatile food and energy goods rose just 0.3 percent -- the smallest in four months -- the figures showed.

Consumer prices have continued to climb in the United States, squeezing family budgets and, by extension, Biden’s popularity.

His opponents accuse the president of precipitating inflation with his gigantic $1.9 trillion coronavirus relief package, which he enacted in March last year shortly after assuming office.

And Republicans renewed their criticism of Biden’s economic policy, warning that Sunday’s passage in