Good morning! It’s Daniel de Visé bringing you your Daily Money update.

According to the Labor Department’s consumer price index released on Wednesday, consumer prices increased by a modest 2.9% over the year ending in July. This annual rate indicates that the intense inflation experienced in 2022 is gradually reducing.

This is the first time the yearly inflation rate has fallen below 3% since March 2021. Summer saw a slight decrease in inflation after a quick rise in the spring months.

On a month-to-month basis, prices rose by 0.2%. Specifically, food prices increased by 2.2% over the year, energy prices went up by 1.1%, while gasoline prices saw a decline. Significant price hikes were noted in transportation services and housing.

What’s the implication for interest rates?

Housing expenses continue to climb

Mitchell and Kathryn Cox, both in their mid-twenties and living in Savannah, Georgia, believed they entered the rental market “at the worst possible moment” as they faced rising rents that exceeded those of friends and family by over 50% who had signed leases in previous years.

After several months of house hunting, the couple eventually purchased a home smaller than they had initially desired, as reported by Andrea Riquier.

Across the nation, high housing costs have turned the traditional milestone for young couples into a challenging ordeal. Despite the easing in inflation, housing costs remain 5.1% higher compared to last year, as per the July report.

What does the future hold for the housing market?

🍔 Today’s Business Update 🍔

Mars Inc., the food giant, announced on Wednesday that it is set to acquire Kellanova, a leader in snack, cereal, and noodle production, for a staggering $35.9 billion.

The family-owned business, known for popular brands like Snickers, Skittles, and M&M’s, plans to purchase Kellanova, the maker of Pringles, for $83.50 per share in an all-cash transaction. Kellanova also includes notable brands like Eggo, Cheez-It, Club Crackers, and Pop-Tarts in its portfolio.

This deal is taking place amidst declining sales in some snack food categories.