Inflation eases as consumer prices rise 6.3% in July

WASHINGTON (AP) — Inflation eased last month as energy prices tumbled, according to a report closely watched by the Federal Reserve.

The Commerce Department reported Friday that consumer prices were up 6.3% in July from a year earlier after posting an annual increase of 6.8% in June, biggest jump since 1982.

Energy prices made the difference in July: They dropped last month after surging in June. So-called core inflation, which excludes volatile food and energy prices, rose 4.6% last month from a year earlier, Commerce said.

Inflation started rising sharply in the spring of 2021 as the economy rebounded with surprising speed from the short but devastating coronavirus recession a year earlier