No Inflation Spike In The Month Of July

The Biden administration shared some welcome news as Americans continue to feel the strain of sky-high prices and record-setting inflation. 

"Today we received news that our economy had 0% inflation in the month of July. Zero percent," said President Joe Biden. 

Prices are still going up, but not as quickly as they were before. 

The Bureau of Labor Statistics reports the Consumer Price Index, or CPI, rose 8.5% year-over-year in July. 

That's a significant slowdown from June's number of 9.1%. 

One of the biggest drivers here is falling gas prices. 

The average price hit $4.01 per gallon on Wednesday, down exactly $1 from the record high set in June. 

"I have no room for nothing, and the more prices go up, the more I have to take away from me," said Charles Anderson, an Arizona resident.  

Also seeing a cool-off: the price of clothing, used cars, appliances and airline fares. 

But it's a different story for other necessities. 

The food index overall spiked 1.1% in July. 

We've been paying more for non-alcoholic beverages, meats, fish, eggs and fruit. 

The same is true for rent, medical care and furniture. 

"The price of a hotel per week is just as much as our rent payment. So, my only option is to probably sleep in my car for a month or two until I can save up some money to fix my credit," said Katie Rister, a Florida resident.  

Analysts are hopeful this downward trend in inflation will continue. 

But they warn it will stay above the Federal Reserve's 2% annual target well into next year — making it likely the Fed will keep its plans to continue hiking interest rates, and making everything from mortgages to credit debt more expensive.