WASHINGTON, D.C. ? Inflation slowed last month as Americans finally got a break at the gas pump, lifting consumers’ spirits and easing fears the country could stumble into recession.

The Labor Department reported Friday that consumer prices rose just 0.2 percent in August, half the gain in July. With oil prices falling in September, economists predicted more good news ahead on inflation.

That should bolster consumer spending and make a recession much less likely.

The recent drop in gasoline – which had surged above $3 per gallon in early August and is now down to an average of $2.62 nationwide – is helping to lift consumer confidence.

The RBC Cash Index, from the Ipsos international polling firm, showed confidence soared to a seven-month high of 93.7 in early September after a sharp fall in August. A separate consumer survey by the University of Michigan also showed confidence rising.

Analysts said the readings offered hope for a rebound in consumer spending, which slowed dramatically in the spring.