Falling energy prices helped to cool down inflation in July, with gasoline falling 2.9% month-on-month and fuel oil falling 1.7%. But this relief may be temporary. Rising crude oil prices and strong refining margins are already driving up fuel costs. US gasoline now averages $4.03 per gallon, up from $3.87 a month ago, indicating that energy could put fresh upward pressure on August inflation.

Falling energy prices helped to cool down inflation in July, with gasoline falling 2.9% month-on-month and fuel oil falling 1.7%. But this relief may be temporary. Rising crude oil prices and strong refining margins are already driving up fuel costs. US gasoline now averages $4.03 per gallon, up from $3.87 a month ago, indicating that energy could put fresh upward pressure on August inflation.