Prices in the US continued to rise rapidly last month, but a fall in gasoline costs helped slow the pace.
The annual inflation rate, the pace at which prices are rising, was 8.5% in July, from June when it rose to 9.1%, the Labor Department said.
Aside from energy, the cost of many items, including food and housing, continued to rise.
The higher costs have left many families in trouble and have had a significant impact on the economy.
Job growth remains strong, but other indicators, such as consumer and business sentiment, have been hit by concerns about rising prices, which are rising faster than since the early 1980s.
The US Federal Reserve has been raising interest rates since March to combat the problem. Raising interest rates is one way to control inflation as it increases the cost of borrowing and should encourage people to borrow and spend less. It can also encourage you to save more.
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