Good morning! It’s Daniel de Visé with your Daily Money.

Consumer prices rose a modest 2.9% in the 12 months through July, the Labor Department reported Wednesday in its consumer price index, an annual rate that suggests the historic inflation surge of 2022 continues to ease.

The annual inflation rate hadn't dipped below 3% since March 2021. Inflation has gently declined this summer, following a brief spike in the spring.

On a monthly basis, prices rose 0.2%. Food prices were up 2.2% on the year. Energy prices were up 1.1%, and gasoline prices were down. Much larger price gains came in transportation services and shelter.

What does that mean for interest rates?

Housing costs are still rising

Mitchell and Kathryn Cox, mid-twenties professionals in Savannah, Georgia, thought that they’d entered the rental market “at the worst time possible,” with skyrocketing prices pushing their monthly cost up more than 50% higher than friends and relatives who’d gotten into leases just a few years earlier. 

Then, the Coxes started to house-hunt.  After months of searching, the couple bought a home that was smaller than what they'd hoped for, Andrea Riquier reports.

Around the country, high housing costs are turning a normal rite of passage for a young couple into a game of grit and chance. Despite the dip in inflation, shelter costs are 5.1% higher than a year ago, according to the July report. 

Where is the housing market headed?

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Food company Mars Inc. announced on Wednesday that it has agreed to acquire Kellanova, a global giant in snack, cereal, and noodle manufacturing, in a whopping $35.9 billion deal.

The family-owned company, home to Snickers, Skittles, and M&M's, will pay $83.50 per share in an all-cash deal for Kellanova, maker of Pringles. Other notable brands under the Kellanova umbrella include Eggo, Cheez-It, Club Crackers, and Pop-Tarts.

The deal comes as some snack foods are hurting for sales.

About The Daily Money

Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you.

Daniel de Visé covers personal finance for USA Today.