Business

America’s annual rate of inflation, measured by the consumer-price index, dropped to 8.5% in July, from 9.1% in June. Petrol prices explained the dip. The average price of a gallon of car fuel is now just under $4; in mid-June it was around $5. The economy is also cooling, shrinking by 0.9% at an annual rate in the second quarter after a contraction of 1.6% in the first. The labour market is still red hot, however. Employers created 528,000 jobs in July, many more than had been expected.