After all, prices were still 8.5 percent higher in July compared to the previous year, even if things didn't worsen further compared to June price levels. The cooling of inflation in July was mainly caused by a significant drop in energy prices, offsetting further price increases for food and shelter.

Regardless of the move in the right direction, prices remain elevated with energy prices 33 percent above last year's levels and food prices 11 percent higher than in July 2021. As millions of families face financial hardship in the face of inflation, many are forced to cut back on some expenses to make ends meet.