The U.S. economy had zero inflation in July. How is that possible?

Inflation remains high but has, at least for now, stopped getting worse, according to figures released Wednesday morning by the Bureau of Labor Statistics.

Prices remained unchanged in July but up 8.5 percent in the last year, according to the latest report. Economists had forecast that prices would rise 0.2 percent, making this month’s figures a rare pleasant surprise. Prices in June had risen over 1 percent, bringing inflation to its fastest pace in 40 years.

This comes less than a week after a blockbuster jobs report showing that 528,000 new jobs were created in July, adding up to an economy that certainly doesn’t seem recessionary, but rather quite odd and maybe out of balance.

Senior Editor Leah Askarinam sat down with Grid’s Domestic Economics Reporter Matthew Zeitlin to ask what is going on with inflation numbers in this very odd economy.

Grid: What was the big question you were hoping this report would answer?

Matthew Zeitlin: It’s a mixed…

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