US Inflation Eases to 3.4% in July as Energy Prices Fall

August 13, 2026
By Mintesinot Nigussie

US consumer inflation eased in July, with annual price growth slowing to 3.4 percent as lower energy prices helped offset increases in housing, food and other services.

The consumer price index rose 0.1 percent on a seasonally adjusted basis in July, after declining 0.4 percent in June, according to data released Wednesday by the US Bureau of Labor Statistics.

On an annual basis, the all-items index increased 3.4 percent in July, down from 3.5 percent in June. Core inflation, which excludes food and energy, rose 2.5 percent over the 12 months to July, compared with 2.6 percent in June.

Shelter prices increased 0.1 percent during the month and accounted for about two-thirds of the overall monthly increase. Food prices also rose 0.1 percent, driven partly by a 0.3 percent increase in prices for food consumed away from home.

Energy prices, by contrast, fell 1.5 percent in July. Despite the monthly decline, the energy index was 14.7 percent higher than a year earlier.

Prices excluding food and energy increased 0.2 percent in July after remaining unchanged in June. Medical care, airline fares, communication, education and recreation were among the categories that recorded increases, while motor vehicle insurance was among the major categories to decline. Food prices were 3.0 percent higher in July than a year earlier.

The latest figures show a modest easing in annual inflation, although price pressures in several service categories continued to rise during the month.

Source: FSX Business News