The Consumer Price Index was unchanged in July, due to a precipitous drop in the price of gasoline, in a small sign of hope the Federal Reserve may begin softening its highly aggressive policy position of late going forward in its September meeting.

The stall in inflation comes after the number advanced 1.3% in June, and offers a small sign of relief to Americans who have been watching inflation rise steadily for two years. Underlying inflation pressures still remain elevated however.

In a Reuters poll of economists, inflation was predicted to rise 0.2% in July after gasoline prices dropped approximately 20%.

Over the 12 months through July, CPI increased by only 8.5%, after the 9.1% rise in June. Economist surveyed by Dow Jones had expected an 8.7% rise.

Core CPI, excluding food and energy rose 5.9% annually and 0.3% monthly, compared with respective estimates of 6.1% and 0.5%. It had climbed 5.9% over the year and 0.7% monthly in June.

While the number is encouraging, the Federal Reserve has indicated it will want to see CPI growth decline for several months before it will let up on the aggressive monetary tightening it has concluded will be necessary to tame the skyrocketing inflation that is presently running at a four-decade high.

The food component of the CPI remained elevated in June, rising 1.1% after climbing 1.0% in June. However other underlying inflation pressures on the core CPI showed encouraging signs.

Shelter costs, which comprise almost 40% of core CPI held steady, with inflation in both the cost of rent and owner’s equivalent rent of primary residence remaining almost the same.