The US Bureau of Labor Statistics has released the US CPI data for July. The annual inflation rate in the US decreased to 3.4% in July 2026, down from 3.5% in June, continuing the trend from May’s high of 4.2%. The Consumer Price Index (CPI) rose by 0.1% monthly, recovering from June’s 0.4% decline, which was the first drop since May 2020.
The rate hike expectations from the US Federal Reserve is likely to fall after July’s inflation reading. US equities will also get a boost after inflation appeared colling down in July.
The all items index rose 3.4 percent for the 12 months ending July after rising 3.5 percent for the 12 months ending June. The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent on a seasonally adjusted basis in July after falling 0.4 percent in June.
The energy index increased 14.7 percent for the 12 months ending July. The food index increased 3.0 percent over the last year. In contrast, the energy index declined 1.5 percent in July.
The all items less food and energy index rose 2.5 percent over the year, following a 2.6-percent increase over the 12 months ending June. The index for all items less food and energy rose 0.2 percent after being unchanged in June.
The index for shelter rose 0.1 percent in July, accounting for roughly two-thirds of the monthly all items increase. The index for food also increased 0.1 percent over the month, as the index for food away from home increased 0.3 percent.
Indexes that increased over the month include medical care, airline fares, communication, education, and recreation. Conversely, the index for motor vehicle insurance was among the major indexes that decreased in July.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 3.4 percent over the last 12 months to an index level of 333.918 (1982-84=100)
Previous Month’s Data
In June, the US CPI fell to 3.5% from 4.2% in May, largely due to lower oil prices after a US-Iran ceasefire announcement. However, the ceasefire has since failed, leading to rising oil prices, which are nearing $90 amid increasing Middle Eastern tensions.
Disclaimer: This article is for informational purposes only and does not constitute investment, financial, or trading advice. Data and figures are sourced from market reports and third-party estimates and may be subject to errors. Markets are subject to risks; please consult a qualified financial advisor before making investment decisions.