US inflation cools in July

The US inflation figure fell to 8.5% year on year for July. Key drivers of the high inflation figures are food and energy costs, these goods are highly volatile within the market so this slowdown may be temporary. The previous inflation movement has placed a continuous strain on families and services giving the US a negative social and health impact for the past few months. Slight relief from this negative impact on US households came as gas prices fell, by $1 per gallon compared to the previous month, easing pressures on the US economy. The reduction of inflation could be down to the Fed's behaviour regarding interest rate decisions, their aggressive increase of the US rates aims to curb inflation rapidly, potentially at the cost of a recession. The inflation print sparked a strong rally in the growth stocks which have struggled this year, with investors feeling much more positive on the outlook.