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Wed, 12 Aug 2026

Wed, 12 Aug 2026 US inflation eases as food and fuel costs cool

Annual US inflation dipped to 3.4% in July, with food costs slowing and housing keeping prices slightly higher.

* US prices rose 3.4% in the year to July, slightly lower than the 3.5% in the year to June.
* Energy prices remained volatile due to the Middle East conflict, but gasoline prices were down 2.9% in July compared to June.
* Food prices rose only slightly in July and at a slower rate than in June.
* Inflation was mainly driven by an increase in housing costs, which makes up a large share of household spending.
* Prices excluding food and energy rose 0.2% after staying flat in June, with medical care and airline tickets edging higher and car insurance continuing to fall.
* The Federal Reserve's new chair, Kevin Warsh, has said the central bank's priority is to keep inflation moving down while avoiding unnecessary shocks to the economy.
* Financial markets reacted calmly to the latest figures, with stocks little changed as the numbers were broadly in line with market expectations.