The consumer price index rose 8.5% from a year ago to July. This was less than expected, mostly because energy prices fell.

If you take out the volatile prices of food and energy, the so-called core CPI rose 5.9% annually and 0.3% monthly, which is less than what was expected,

which was 6.1% annually and 0.5% monthly. The report was good news for workers, whose real wages went up by 0.5% per month.

Prices for a wide range of goods and services rose 8.5% in July compared to the same month last year. This was slower than the previous month,

mostly because gasoline prices went down. Prices stayed the same month to month as energy prices fell by 4.6% and gasoline prices fell by 7.7%.

That made up for the fact that food prices went up by 1.1% each month and housing costs went up by 0.5%.

Economists polled by Dow Jones thought that the headline CPI would go up 8.7% yearly and 0.2% monthly. If you take out the volatile prices of food and energy,

the so-called core CPI rose 5.9% annually and 0.3% monthly, which is less than what was expected, which was 6.1% annually and 0.5% monthly.

Even though the numbers were lower than expected, inflation pressures stayed high. The 12-month increase is now 10.9%, which is the fastest rate since May 1979.

Over the past year, butter is up 26.4%, eggs are up 38%, and coffee is up more than 20%. Even though the energy index went down from one month to the next,

electricity prices went up 1.6% and were 15.2% higher than a year ago. From a year ago, the energy index went up by 32.9%.

Used car prices went down by 0.4% month-to-month, while clothing prices went down by 0.1%. Prices for transportation services also went down by 0.5%,

as airline fares went down by 1.8% for the month and 7.8% from a year ago. The report made the markets feel better.

Futures tied to the Dow Jones Industrial Average went up by more than 400 points, and the yields on government bonds dropped sharply.

Aneta Markowska, chief economist at Jefferies, said, "Things are going in the right direction." "This is the best news we've heard in a long time," they said.

The report was good news for workers, whose real wages went up by 0.5% per month. Even after accounting for inflation, the average hourly wage was still 3% less than it was a year ago.

Shelter costs, which make up about a third of the CPI weighting, have kept going up and are now 5.7% higher than they were a year ago.

The numbers show that inflation pressures are getting a little less intense, but they are still close to their highest levels since the early 1980s.