US Economy: Easing Inflation, But Prices Remain High Amid Retail Sales Slump

The US economy has shown some signs of easing inflation, but prices remain high. Inflation in July was 3.4% compared to a year ago, down from 3.5% in June.

However, this still represents a significant increase over the 2.4% rate seen before the Iran war began in February.

Retail sales have also fallen sharply, with a 0.6% decline last month, which is the biggest fall since May 2025.

The Federal Reserve's decision on interest rates remains uncertain, with some members voting to raise it to curb inflation.