Stagflation? Or just stagnation?

NEW YORK (CNNMoney.com) -- Two key reports in the past week show that inflation was running high in July. But August is offering relief.

Oil has fallen to about $112 a barrel, nearly 25% from its mid-July record high. Gas prices have declined for 33 consecutive days. After flirting with $1,000 an ounce last month, the price of gold is now below $800.

And the dollar? It's gained more than 8% against the euro in the past few weeks.