U.S. inflation shows signs of having peaked as rate eases to 8.5% in July

The torrid increase in the cost of living showed signs of finally easing last month, with the U.S. inflation rate cooling to 8.5 per cent.

The Bureau of Labour Statistics reported Wednesday that the annual inflation rate eased from a 40-year high of 9.1 per cent in June to 8.5 in July. 

Economists had been expected the rate to ease off, but the 8.5 per cent figure was softer than the 8.7 per cent they were expecting.

Gasoline prices have eased significantly, which was a major contributor to the slowdown.

Food prices, meanwhile, continued to rise at a faster pace than the overall rate,