U.S. Inflation Slows to 3.4% in July as Gas Prices Ease
Shelter costs drove most of the monthly increase as gasoline prices fell 2.9%, helping keep core inflation in line with forecasts, the Labor Department said.
- On Wednesday, August 12, 2026, the U.S. Bureau of Labor Statistics reported annual headline inflation eased to 3.4% in July, down from 3.5% in June, as consumer prices rose 0.1% month-over-month.
- Federal Open Market Committee officials, who voted 9-3 last month to maintain the 3.50%–3.75% benchmark interest rate, remain divided over whether further hikes are necessary to prevent inflation from becoming entrenched.
- Core CPI, excluding volatile food and energy, rose 0.2% monthly for a 2.5% annual increase, while the shelter index added 0.1% and lettuce prices plunged 16.4% amid a cyclospora outbreak.
- Market odds for a September interest rate hike fell to 38% as investors pared back expectations following the benign inflation data, according to CME Group's FedWatch.
- Despite easing energy-driven volatility, inflation remains well above the Federal Reserve's 2% target, forcing policymakers to monitor upcoming labor and economic data before their September meeting.
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328 Articles
Associated Press News
America In Focus: Inflation cools in July, but so do consumers with their spending
U.S. inflation slowed last month and a measure of underlying price pressures also cooled, suggesting higher oil and gas prices from the Iran war are only having a limited impact on broader costs in the economy.
The Daily Advance
ReflectorMichael R. Worthington: Local economy is currently in a desirable situation
Inflation is slowing, which is good news for many reasons. The U.S. Consumer Price Index (CPI) went up by only 0.1% during July, which equals an annual inflation rate of 3.4% — slightly down from 3.5% in June.
Not Making Headlines: Inflation Drops to 3.4% in July Beating Expert’s Predictions – Compared to 8.3% at Same Time During Biden’s Autopen Presidency * The Gateway Pundit * by Jim Hoft
July inflation numbers dropped below expert's predictions. The post Not Making Headlines: Inflation Drops to 3.4% in July Beating Expert’s Predictions – Compared to 8.3% at Same Time During Biden’s Autopen Presidency appeared first on The Gateway Pundit.
The New York stock market is headed for a record high today after the latest sign that inflation is easing, along with oil prices.
The “AI paradox” is that while AI is supposed to make goods and services cheaper in the long run, it is making them more expensive in the short term. The rush by companies to lead the AI revolution is increasing demand for everything from computer chips and software to electricity, driving up prices. If this boom continues, inflation could continue to rise, complicating central banks’ efforts to curb it. In July, inflation rose 3.4% year-on-year…
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