U.S. Inflation Slows to 3.4% in July as Gas Prices Ease
Gasoline and energy costs eased, while core inflation cooled to 2.5%, giving Federal Reserve policymakers less urgency to raise rates.
- 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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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…
JUST IN: Americans Get Welcome Financial News As Trump Economy Defies Experts
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…
Trump Economy: July Inflation Index Shows Wages Fell Further Behind Prices
The Consumer Price Index rose 0.1 percent in July, with the core rate rising 0.2 percent. Over the year, the overall CPI is up 3.4 percent, while the core is up 2.5 percent.As always, there are a few seeming anomalies. Prescription drug prices fell 0.8 percent in July and are down 3.1 percent over the last year. Nonetheless, people are spending about 2.0 percent more on drugs this year than last year. Computer prices jumped 3.5 percent in July. …
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