Inflation eases in July as gasoline and grocery prices fall

Falling grocery prices helped to keep inflation in check last month. Lettuce prices dropped sharply in July after an outbreak of food-borne illness prompted a recall of some leafy greens.

Consumer prices in July were up 3.4% from a year ago — a smaller annual increase than in May or June. The news makes it less likely the Fed will feel the need to raise interest rates in September.

(Image credit: Justin Sullivan)