Interest rate hikes in the US caused inflation to decline in July.

While inflation in the USA remained below expectations due to the decline in fuel prices, the aggressive tightening pressure on the Fed was reduced to some extent.

Annual inflation in the USA is 8.5 percent. The fall in gasoline prices offset the rise in food and housing prices. Economists surveyed by Bloomberg had expected annual inflation to be 8.7 percent. The core indicator, the consumer price index excluding food and energy, increased by 5.9 percent in July compared to the same month of the previous year. The expectation for this data was determined as 6.1 percent. Monthly core inflation was 0.3 percent, below expectations of 0.5 percent.

While the drop in gas prices is good news for Americans, the high cost of living is causing Americans to lose their savings.