The consumer price index rose 8.5 percent in July compared to the same period last year, down from the inflation rate in June, according to an Aug.10 report from CNBC.
Energy prices and the cost of gasoline both fell in July, by 4.6 percent and 7.7 percent respectively, while the cost of food rose 1.1 percent.
The inflation rate remains high, but the increase was less than expected as Dow Jones economists were expecting the July inflation rate to rise by 8.7 percent.
Though energy prices fell from June, they are up 15.2 percent from the same time last year.
July futures tied to the Dow Jones were up 400 points while government bond yields saw a steep fall.
Workers saw a 0.5 percent increase in real wages in July, but inflation remains at the highest levels since the early 1980s.