The annual inflation rate in the US, the pace at which prices rise, fell to 8.3% in August, down from 8.5% in July, marking a second month of decline.
However, the costs of food, housing and medical care continued to surge.
The cost of groceries in the United States jumped 13.5% in the 12 months to August, while housing costs climbed 6.2% and medical care rose 5.6%.
Energy costs – one of the big drivers of inflation – also remain far higher than a year ago, but they have dropped sharply in the past two months, falling more than 10% from July to August, the Labor Department said.
Overall, the consumer price index, which tracks goods and services across the economy, was up 0.1% from July to August.
Inflation in the United States peaked at 9.1% in June, the fastest pace since the early 1980s.
Like central banks in other countries, including the UK, policymakers at the Federal Reserve have been raising interest rates since March to tackle the problem.