U.S. Inflation Slows to 3.4% in July as Gas Prices Ease
- 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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Americans got another dose of encouraging economic news Wednesday as inflation cooled in July, driven by falling prices for gasoline, groceries and prescription drugs. The consumer price index rose just 0.1% from June, according to new data from the Department of Labor. On an annual basis, prices were up 3.4%, down from 3.5% the previous month. The July reading matched economists’ consensus forecast, but the broader trend showed inflation contin…
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Inflation eased slightly in July, but prices remain elevated as war drags on
Inflation continued to ease last month from its war-driven surge earlier in the year, but prices still remain at a high level as constrained fuel supplies have increased the cost of living. The post Inflation eased slightly in July, but prices remain elevated as war drags on appeared first on Hawaii Tribune-Herald.
fredericksburg.com
Journal Gazette & Times-CourierConsumer inflation mild in July
WASHINGTON — U.S. consumer prices barely increased in July as the cost of gasoline declined for a second straight month, while underlying inflation was benign, further reducing the odds of an interest rate hike from the Federal Reserve next month.
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