(CNN) — The Fed’s favored inflation indicator showed that prices took a breather in July as energy prices continued to fall from record highs.

The Personal Consumption Expenditures price index rose by 6.3% for the year ended in July, down from the 40-year high of 6.8% reported in June.

The cooldown was largely expected: Energy prices dropped considerably last month. The July Consumer Price Index, another significant inflation barometer, also showed a slowing in price hikes.

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