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US inflation falls to 8.5% in July, but remains close to multi-decade high

US prices fell in July as gas prices eased and annual inflation fell to 8.5%. This is still close to a multi-decade high, but below the 40-year peak. It hit in June.

July's figure is still high, but down significantly from June's record 9.1% annual rate, raising hopes that inflation has finally peaked in the US. That follows other indicators that suggest price gains are finally easing.

After reaching a national average of $5 per gallon in mid-June, gas prices in the United States fell sharply. It now averages just over $4 a gallon, up about $1 from the same time last year, according to AAA. Prices of other commodities such as copper, wheat and corn have also fallen in recent weeks after soaring in the wake of Russia's invasion of Ukraine.

Energy and food prices are notoriously volatile and could rise again. And prices of other essentials, including housing and services like health care, are still rising and may not fall as fast as oil or corn. It will benefit the Biden administration, which passed a $739 billion inflation cut bill. The bill aims to tackle the climate crisis while cutting healthcare costs and raising taxes on big businesses.

The bill passed shortly after the government announced that the United States added 528,000 new jobs in her July. This far exceeded expectations and gave Biden a boost.

However, with the job market still hot and inflation still high, the Federal Reserve is likely to continue raising interest rates in an effort to bring inflation down to its 2% target. I mean