Down from 9.1% in June, inflation now at 8.5% with the largest 12-month increase in the food index since May 1979.

The U.S. Bureau of Labor Statistics (BLS) is reporting that the Consumer Price Index (CPI) was down slightly in July from its June high of 9.1%.  Inflation now sits at 8.5% across the U.S., still at a 40-year high mark.

The price of gas and oil have fallen in recent weeks, which impacts the CPI, while the Federal Reserve has raised interest rates making borrowing more expensive.

BLS reports that gasoline index fell 7.7% in July, offsetting increases in the food and shelter index.  The energy index fell 4.6% as part of the gasoline and natural gas index declines, but the index for electricity increased.

The all items index increased 8.5 percent for the 12 months ending in July, a smaller figure than the 9.1-percent increase for the period ending June. The all items less food and energy index rose 5.9 percent over the last 12 months. The energy index increased 32.9 percent for the 12 months ending July, a smaller increase than the 41.6-percent increase for the period ending June.

The food index increased 10.9 percent over the last year, the largest 12-month increase since the period ending May 1979.

In late July, the Federal Reserve raised interest rates another 0.75%, its fourth rate hike in a year, with more increases on the horizon.