Sharply lower prices for gas and cheaper used cars slowed U.S. inflation in August for a second straight month, though many other items rose in price, indicating that inflation remains a heavy burden for American households.

Consumer prices surged 8.3% in August compared with a year earlier, the government said Tuesday. Though still painfully high, that was down from an 8.5% jump in July and a four-decade high of 9.1% in June. On a monthly basis, prices rose 0.1%, after a flat reading in July.

Excluding the volatile food and energy categories, so-called core prices jumped 0.6% from July to August, higher than many economists had expected and a sign of inflation's persistence. But one expert told Spectrum News that the news isn't all bad.

"Gas prices were way down from when they peaked a couple of months ago," Harry Holzer, an economist and professor at Georgetown University, said in an interview. "And if you look at the total increase in inflation, the monthly increase was one-tenth of a percentage point. That's a really small increase."

"Today’s data show more progress in bringing global inflation down in the US economy," President Joe Biden said in a statement. "Overall, prices have been essentially flat in our country these last two months: that is welcome news for American families, with more work still to do."

"Gas prices are down an average of $1.30 a gallon since the beginning of the summer," Biden continued. "This month, we saw some price increases slow from the month before at the grocery store. And real wages went up again for a second month in a row, giving hard-working families a little breathing room."

But, the president acknowledged, the work is still far from over to help alleviate the strain on Americans' wallets.

"It will take more time and resolve to bring inflation down, which is why we passed the Inflation Reduction Act to lower the cost of healthcare, prescription drugs and energy," Biden said. "And my economic plan is showing that, as we bring prices down, we are creating good paying jobs and bringing manufacturing back to America."

Inflation remains far higher than many Americans have ever experienced and is keeping pressure on the Federal Reserve, the agency tasked with keeping prices stable. The Fed is expected to announce another big increase in its benchmark interest rate next week, which will lead to higher costs for many consumer and business loans.

"If you're taking out a loan to buy a car, or something like that, you'll likely have to pay higher monthly payments, the interest rates on your credit card debt might go up a little bit. So those are all the different places that consumers will see it and feel it."

Inflation has escalated families' grocery bills, rents and utility costs, among other expenses, inflicting hardships on many households and deepening gloom about the economy despite strong job growth and low unemployment.

Even if inflation peaks, economists expect it could take two years or more to fall back to something close to the Fed's annual 2% target. The cost of rental apartments and other services, such as health care, are likely to keep rising in the months ahead.

Republicans have sought to make inflation a central issue in the midterm congressional elections. They blame President Joe Biden's $1.9 trillion stimulus package passed last year for much of the increase. Many economists generally agree, though they also say that snarled supply chains, Russia's invasion of Ukraine and widespread shortages of items like semiconductors have been key factors in the inflation surge.

Yet the signs that inflation might have peaked — or will soon — could bolster Democrats' prospects in the midterm elections and may already have contributed to slightly higher public approval ratings for Biden. In his speeches, Biden has generally stopped referring to the impact of high prices on family budgets. He has instead highlighted his administration's recent legislative accomplishments, including a law enacted last month that's intended to reduce pharmaceutical prices and fight climate change.

Nationally, the average cost of a gallon of gas has dropped to $3.71, down from just above $5 in mid-June. Many businesses are also reporting signs that supply backlogs and inflation are beginning to fade.

General Motors has said the pandemic disruptions to overseas production of semiconductors, which have reduced auto output, have largely dissipated and that supply chain disruptions overall have improved about 80% from the worst days of the pandemic.

Over the past year, prices of meat, milk and fruits and vegetables have soared by double-digits. But executives at Kroger, the nation's largest grocery chain, said that falling prices for farm commodities like wheat and corn could slow cost increases for food.

Next week, most Fed watchers expect the central bank to announce a third straight three-quarter-point hike, to a range of 3% to 3.25%. The Fed's rapid rate increases — the fastest since the early 1980s — typically lead to higher costs for mortgages, auto loans and business loans, with the goal of slowing growth and reducing inflation. The average 30-year mortgage rate jumped to nearly 5.9% last week, according to mortgage buyer Freddie Mac, the highest figure in nearly 14 years.

Chair Jerome Powell has said the Fed will need to see several months of low inflation readings that suggest price increases are falling back toward its 2% target before it might suspend its rate hikes.

Wages are still rising at a strong pace — before adjusting for inflation — which has elevated demand for apartments as more people move out on their own. A shortage of available houses has also forced more people to keep renting, thereby intensifying competition for apartments.

Rising rents and more expensive services, such as medical care, are also keeping inflation high.