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US consumer inflation moderated to 3.4 per cent year-on-year in July 2026 from 3.5 per cent in June, primarily as a decline in energy prices helped offset continued price increases in shelter and food, according to data released by the US Bureau of Labor Statistics on Wednesday.
On a month-on-month basis, the Consumer Price Index (CPI) for all urban consumers rose 0.1 per cent in July, reversing a 0.4 per cent decline in June. The shelter index increased 0.1 per cent and accounted for roughly two-thirds of the monthly increase, while food prices also rose 0.1 per cent. The moderation in annual inflation was supported by the decline in energy prices during July. The energy index fell 1.5 per cent month-on-month, while gasoline prices declined 2.9 per cent. However, energy prices remained elevated compared with a year earlier, with the energy index up 14.7 per cent and gasoline prices rising 24.6 per cent. Food prices rose 0.1 per cent during the month, although food-at-home prices declined 0.1 per cent. The meat, poultry, fish and eggs index fell 0.7 per cent, while fruits and vegetables declined 0.1 per cent. These declines were partly offset by a 0.3 per cent increase in food-away-from-home prices, including a 0.4 per cent rise in limited-service meals. Core CPI, which excludes food and energy, increased 0.2 per cent month-on-month in July after remaining unchanged in June. Higher prices for medical care, airline fares, communication, education, recreation and used vehicles contributed to the increase, while motor vehicle insurance prices declined 0.3 per cent. On an annual basis, core inflation also moderated, easing to 2.5 per cent in July from 2.6 per cent in June. Shelter prices increased 3.2 per cent over the year, while food prices rose 3.0 per cent. (ANI)
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