Charting the Global Economy: Inflation Eases in US and Europe

Shoppers in Georgetown, Washington, DC.

Photographer: Ting Shen/Bloomberg
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Inflation cooled in the US and Europe, setting the stage for policymakers in both regions to lower interest rates in September.

On a three-month annualized basis, the Federal Reserve’s preferred measure of underlying US inflation advanced 1.7% in July, the slowest this year. In Europe, consumer prices rose 2.2% in August from a year ago — the tamest since mid-2021 and significantly lower than the 2.6% pace a month earlier.