Prices in the US continued to rise rapidly last month, but a fall in petrol costs helped to ease the pace.
The Labor Department says the annual inflation rate, the pace at which prices rise, was 8.5% in July, down from June when it surged to 9.1%.
The higher costs have left many families struggling and had a significant impact on the economy.
Petrol prices fell by 7.7% compared with June, when prices at the pump had hit a record high of more than $5 per gallon on average. Overall the report was better than many analysts had expected.