Consumer prices rose 0.1% in July, as expected, putting the annual rate at 3.4%
- On Wednesday, the Labor Department's Bureau of Labor Statistics reported U.S. consumer prices rose 0.1% in July, slowing the annual inflation rate to 3.4% from 3.5% in June.
- Energy prices fell 1.5% in July, led by a 2.9% decline in gasoline costs, though year-over-year energy prices remain 14.7% higher, reflecting ongoing tensions in the Iran war.
- Excluding volatile food and energy costs, core inflation rose 0.2% monthly and 2.5% annually, while real average hourly earnings declined 0.2% in July, limiting consumer purchasing power.
- Markets pared bets on a September Federal Reserve rate hike after the report, with odds falling below 40% for action at the September 16 meeting.
- Despite cooling inflation, the rate remains above the Fed's 2% target, with structural pressures from the ongoing Iran war continuing to complicate the broader economic outlook.
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Georgia Public Broadcasting
Inflation eases in July as gasoline and grocery prices fall
Consumer prices in July were up 3.4% from a year ago — a smaller annual increase than in May or June. The news makes it less likely the Fed will feel the need to raise interest rates in September.
US CPI Moderates to 3.4 Per Cent YoY in July as Lower Energy Prices Offset Shelter, Food Pressures
Get latest articles and stories on Business at LatestLY. US consumer inflation moderated to 3.4 per cent year-on-year in July 2026 from 3.5 per cent in June, primarily as a decline in energy prices helped offset continued price increases in shelter and food, according to data released by the US Bureau of Labor Statistics on Wednesday. Business News | US CPI Moderates to 3.4 Per Cent YoY in July as Lower Energy Prices Offset Shelter, Food Pressur…
The slowdown in consumer price increases in the United States was confirmed in July, taking advantage of the pause in the Middle East conflict and its positive impact on energy prices, a new welcome for the US central bank.
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