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Consumer prices fell 0.1% in July, as plunging gasoline prices dragged down a price index that's closely watched by the Federal Reserve.
Why it matters: It's an encouraging sign for the Fed as it wages an intense battle against inflation. Still, even as price gains cool they remain uncomfortably high. Inflation is still up 6.3% compared to this time last year by this measure, the highest in decades.
- Excluding volatile food and energy costs, the Personal Consumption Expenditures price index ticked up 0.1% last month, a slowdown from the 0.6% rise registered in June.
- Compared to a year ago, the price index (stripping out food and energy) is up 4.6%.