Inflation Eases as Consumer Prices Rise 6.3 Percent in July: Commerce Department Report

A shopper looks at organic produce at a supermarket in Montebello, Calif., on Aug. 23, 2022. Frederic J. Brown/AFP via Getty Images

WASHINGTON—Inflation eased last month as energy prices tumbled, raising hopes that a surge in prices increases may have peaked.

According to Commerce Department report Friday that is closely watched by the Federal Reserve, consumer prices rose 6.3 percent in July from a year earlier after posting an annual increase of 6.8 percent in June, biggest jump since 1982. Energy prices made the difference in July: They dropped last month after surging in June.