CPI Increases .1% Showing Signs of Inflation Moderation

The Consumer Price Index, or CPI, moderated a little in July, meaning the pace of price increases slowed. The CPI increased 0.1% in July after declining 0.4% in June, while prices were up 3.4% over the previous 12 months.

Although inflation is beginning to ease, prices remain elevated, and many people are still struggling to pay their bills and living paycheck to paycheck. It is not easy—I have been there, done that. Food prices increased 3.0% over the past year, while shelter increased 3.2%, so hopefully we will continue to see these areas moderate as well.

Overall, the latest report provides some positive signs, but consumers are still feeling the effects of higher prices. I have included the article below, along with the original source and a summary of the information. 

I like this review article, 

Consumer prices rose 0.1% in July, as expected, putting the annual rate at 3.4%

Consumer Price Index Shows Moderate Inflation in July 2026

• The Consumer Price Index (CPI) for All Urban Consumers increased 0.1% in July 2026 after declining 0.4% in June. Over the previous 12 months, consumer prices increased 3.4%.
• Shelter prices increased 0.1% in July and accounted for approximately two-thirds of the overall monthly CPI increase. Food prices also rose 0.1%.
• Energy prices provided some relief, declining 1.5% in July. However, energy prices were still 14.7% higher than they were one year earlier.
• Core inflation, measured by prices excluding food and energy, increased 0.2% in July and was up 2.5% over the previous 12 months, down from 2.6% in June.
• Overall, the July report suggests that inflation continued to moderate compared with June, although prices remained elevated in several areas. Food increased 3.0% and shelter increased 3.2% over the year, demonstrating that consumers continued to face meaningful increases in everyday living costs.

U.S. Bureau of Labor Statistics. (2026, August 12). Consumer price index—July 2026. U.S. Department of Labor. https://www.bls.gov/news.release/cpi.nr0.htm