US inflation will likely stay high even as gas prices fall

FILE - Gas prices are displayed at a Sunoco gas station along the Ohio Turnpike near Youngstown, Ohio, Tuesday, July 12, 2022. Thanks largely to falling gas prices, the government's inflation report for July, to be released Wednesday, Aug. 10, 2022, will probably show that prices jumped 8.7% from a year earlier, according to a survey of economists by data provider FactSet. (AP Photo/Gene J. Puskar, File)

WASHINGTON (AP) - Americans may finally be catching a break from relentlessly surging prices - if just a slight one - even as inflation is expected to remain painfully high for months.

Thanks largely to falling gas prices, the government's inflation report for July, to be released Wednesday morning, is expected to show that prices jumped 8.7% from a year earlier - still a sizzling pace but a slowdown from the 9.1% year-over-year figure in June, which was the highest in four decades.

The forecast by economists, if it proves correct, would raise hopes that inflation might have peaked and that the run of punishingly higher prices is beginning to ease slightly. There have been other hopeful signs, too, that the pace of inflation may be moderating.

At the same time, an array of other economic developments are threatening to keep intensifying inflation pressures.