08/27/2026
The latest inflation report offered some encouraging signs that price pressures are continuing to moderate.
The Consumer Price Index (CPI) rose 0.1% in July, following a 0.4% decline in June, according to the U.S. Bureau of Labor Statistics. Over the past 12 months, consumer prices increased 3.4%, down slightly from the 3.5% annual rate reported in June.
Core CPI, which excludes the more volatile food and energy categories, increased 0.2% for the month and 2.5% over the past year, also easing from June's 2.6% annual rate. The results were in line with Wall Street expectations.
Shelter costs increased just 0.1% in July, although they still accounted for roughly two-thirds of the overall monthly CPI increase. Food prices also rose 0.1%, while energy prices declined 1.5% for the month. Despite the monthly decline, energy costs remain 14.7% higher than a year ago, while food prices are up 3.0%.
Elsewhere, medical care costs increased 0.4%, airline fares rose 2.2%, new vehicle prices increased 0.1%, and used cars and trucks rose 0.4%.
While annual inflation remains above the Federal Reserve's 2% target, the July report suggests that some of the inflationary pressure seen earlier in the year may be easing. Markets responded positively to the report, while expectations for a Federal Reserve rate increase in September declined.
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Sources:
https://www.bls.gov/news.release/cpi.nr0.htm
https://www.cnbc.com/2026/08/12/cpi-inflation-report-july-2026.html
