US Economy: Inflation eases, prices stay high

Over the past week, the United States economy and inflation have been a major concern for Americans, with rising grocery and gas prices impacting families and businesses. According to The Associated Press, inflation in the U.S. slowed last month, but prices remain higher than they were a year ago. The Labor Department reported that consumer prices climbed 3.4% in July from a year ago, slightly down from 3.5% in June, but still higher than before the Iran war began in February.

The Federal Reserve is divided on whether to raise interest rates to curb inflation, with the central bank keeping its rate unchanged at around 3.6% at a recent meeting. Retail spending fell more than expected as the boost from government refunds began to fade, with a 0.6% decrease in July from June's revised 0.2%.

Existing-home sales in the U.S. dipped in July due to record prices and high mortgage rates, with sales dropping 1.7% from June to 4.06 million units. Home prices hit record levels in July, with the median sales price rising 2% year-over-year to $434,100. Wholesale inflation eased last month as the rise in gas prices due to the Iran war and other costs subsided, indicating that consumer inflation could decrease in the coming months.

Jobless claims increased in the U.S. last week, but layoffs remain at historically low levels, suggesting a stable labor market. Mortgage rates have slightly decreased, but remain higher than last year's levels, potentially limiting the purchasing power of homebuyers.