This Week In The Economy: Encouraging US Inflation Data, Retail Sales Reinforce Soft Landing Hopes, Disappointing UK Inflation Data

Welcome to a regular snapshot review of U.S. and international economic news that aims to 1) provide a window into the challenges and decisions facing businesses today, 2) determine the direction of economic policy — such as the speed at which central banks decide to raise interest rates, and 3) assess what the impact will be for consumers.

US Annual Inflation Rate Inches Closer To Federal Reserve Target

The Bureau of Labor Statistics this week reported that consumer prices in July rose at the slowest annual pace in three years, although housing costs remain stubbornly high.

The Consumer Price Index increased 0.2%, after declining 0.1% in June. Excluding food and energy prices, the CPI also increased by 0.2% — following a 0.1% uptick in June.

Over the last 12 months, consumer prices increased by 2.9%, the slowest rise since March 2021, and core CPI rose 3.2% — the smallest increase…