America In Focus: Inflation cools in July, but so do consumers with their spending
The economy, inflation and how those forces could impact the lives of Americans were front and center over the past week. Trips to the grocery store and gas station are more painful than they were last year, and rising costs are impacting the decisions of both households and businesses. Here’s a snapshot of prominent economic data and news that occurred over the past week and…
In recent weeks, the United States economy and inflation have been major topics of discussion. Rising grocery and gas prices have altered consumer decisions for both households and businesses. In July, inflation slowed, with a measure of underlying price pressures also cooling. This suggests that the impact of high oil and gas prices from the Iran war is limited.
Consumer prices increased 3.4% from a year ago, slightly down from June's 3.5%, according to the Labor Department. However, this is still higher than before the Iran war began in February, when inflation was 2.4%. On a monthly basis, prices only rose 0.1% from June to July. As the Federal Reserve continues to debate whether to raise interest rates to combat inflation, retail spending unexpectedly dropped in July.
Sales fell 0.6% overall, marking the largest decline since May 2025. The biggest decrease occurred when government tax refunds diminished. Despite a temporary price surge at gas stations and auto dealers, retail sales excluding these sectors fell 0.2%. Existing home sales also declined in July, dropping 1.7% from June. This decrease is attributed to record prices and the highest mortgage rates in a year, which deter many potential buyers.
Median home prices continued to rise, reaching an all-time high of $434,100 in July, according to the National Association of Realtors.
Written by urgent.news from Associated Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
