Energy Prices Fall for Second Straight Month, Inflation Still High

Inflation slowed in July as energy prices fell for the second straight month, though consumer costs remain above the Federal Reserve's 2% target. The consumer price index showed modest inflation in July, with prices increasing just 0.1% for the month.

Over the 12-month period ending in July, consumer prices rose 3.4%, down from 4.2% in the year ending in May. Energy prices fell 1.5% in July, but that decline did little to offset a 15.7% increase in energy costs over the past year.

Nationally, the average price of a gallon of gas was 16 cents higher than a month ago, according to AAA. Beyond energy, food costs also remain above the Fed's 2% target, with Americans spending 3% more on food over the past year, and shelter costs rising 3.2%.