U.S. inflation remained mild in July as falling gasoline and energy costs helped keep consumer price increases in check and pushed the annual inflation rate lower, according to figures reported Wednesday by the Labor Department. Food and shelter costs continued to rise, while core prices increased modestly after being unchanged in June and the annual core inflation rate also declined.
U.S. consumer prices rose 0.1% in July, according to the latest Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics, matching expectations after a 0.4% decline in June.
The CPI, a key inflation gauge, measures changes in what American consumers pay for a broad basket of goods and services, ranging from eggs to energy.
Food prices rose 0.1% in July following two consecutive monthly gains of 0.2%. Grocery store prices fell 0.1% after rising 0.2% in June, while restaurant prices increased 0.3% following a 0.2% gain.
Over the past year, overall food prices climbed 3.0%, unchanged from the prior annual rate. Grocery prices rose 2.7% for a third straight month, while dining-out costs increased 3.4% for a second consecutive month.
Energy prices helped temper overall consumer inflation. Gasoline prices fell 2.9% in July after plunging 9.7% in June. Even so, pump prices remained 24.6% higher than a year earlier, down from a 26.7% annual increase previously.
The broader energy index, which includes gasoline, electricity and fuel oil, also declined 1.5% in July after falling 5.7% in June. Compared with a year earlier, energy prices were up 14.7%, easing from a 15.7% annual increase previously.
Excluding the volatile food and energy components, core consumer prices rose 0.2% in July, as expected, after remaining unchanged in June.
Shelter costs increased 0.1% in July for a second straight month. Over the past year, shelter prices rose 3.2%, down from 3.3% previously.
Shelter accounted for "roughly two-thirds of the monthly all items increase," the CPI report noted.
The shelter component of the CPI includes apartment rents, owners’ equivalent rent — an estimate of what homeowners would pay to rent their homes — lodging away from home such as hotels and motels, housing at schools, and tenants’ and household insurance.
In other key categories:
- Clothing prices rose 0.1% in July after falling 0.6% in June and stood 3.9% higher than a year earlier.
- New vehicle prices edged up 0.1% in July after being unchanged in June, leaving them 0.5% higher year over year.
- Used car and truck prices increased 0.4% in July after falling 0.2% in June and were 1.9% lower than a year earlier.
- Airline fares surged 2.2% in July following a 0.2% increase in June and stood 25.5% higher year over year.
The headline annual inflation rate slowed to 3.4% for the 12 months ending in July, as expected, from 3.5% in June.
Core inflation rose 2.5% over the 12 months through July, also as expected, down from 2.6% in June.
This core, "all items less food and energy" index is among the inflation measures monitored by Federal Reserve policymakers to help assess price trends and guide monetary policy decisions.
The following table of key inflation figures covers the seven months through July, as published by the U.S. Labor Department’s Bureau of Labor Statistics (www.bls.gov/cpi) on August 12, 2026.
To compile the CPI, the BLS collects prices each month in 75 urban areas from about 6,000 housing units and approximately 22,000 retail establishments.
January 2026 to July 2026 Consumer Prices – Gains & Losses in Percent
(Seasonally Adjusted from Prior Month and Unadjusted 12-Month)
| Jan 2026 | Feb 2026 | March 2026 | April 2026 | May 2026 | June 2026 | July 2026 | 12 Month | |
| All items | 0.2 | 0.3 | 0.9 | 0.6 | 0.5 | -0.4 | 0.1 | 3.4 |
| Food | 0.2 | 0.4 | 0.0 | 0.5 | 0.2 | 0.2 | 0.1 | 3.0 |
| Food at home | 0.2 | 0.4 | -0.2 | 0.7 | 0.1 | 0.2 | -0.1 | 2.7 |
| Food away from home | 0.1 | 0.3 | 0.2 | 0.2 | 0.3 | 0.2 | 0.3 | 3.4 |
| Energy | -1.5 | 0.6 | 10.9 | 3.8 | 3.9 | -5.7 | -1.5 | 14.7 |
| Energy commodities | -3.3 | 1.1 | 21.3 | 5.6 | 6.7 | -9.5 | -2.9 | 24.7 |
| Gasoline (all types) | -3.2 | 0.8 | 21.2 | 5.4 | 7.0 | -9.7 | -2.9 | 24.6 |
| Fuel oil | -5.7 | 11.1 | 30.7 | 5.8 | 3.8 | -9.2 | -1.7 | 39.1 |
| Energy services | 0.2 | 0.2 | 0.4 | 1.6 | 0.4 | -0.7 | 0.3 | 4.3 |
| Electricity | -0.1 | -0.7 | 0.8 | 2.1 | 0.6 | -1.0 | 0.1 | 4.2 |
| Utility (piped) gas service | 1.0 | 3.1 | -0.9 | -0.1 | -0.5 | 0.5 | 0.7 | 4.3 |
| All items less food and energy | 0.3 | 0.2 | 0.2 | 0.4 | 0.2 | 0.0 | 0.2 | 2.5 |
| Commodities less food and energy | 0.0 | 0.1 | 0.1 | 0.0 | -0.1 | -0.1 | 0.2 | 0.8 |
| New vehicles | 0.1 | 0.0 | 0.1 | -0.2 | -0.3 | 0.0 | 0.1 | 0.5 |
| Used cars and trucks | -1.8 | -0.4 | -0.4 | 0.0 | 0.1 | -0.2 | 0.4 | -1.9 |
| Apparel | 0.3 | 1.3 | 1.0 | 0.6 | 0.3 | -0.6 | 0.1 | 3.9 |
| Medical care commodities | -0.1 | 0.0 | -1.0 | -0.4 | -0.7 | -0.2 | -0.6 | -2.7 |
| Services less energy | 0.4 | 0.3 | 0.2 | 0.5 | 0.3 | 0.0 | 0.2 | 3.0 |
| Shelter | 0.2 | 0.2 | 0.3 | 0.6 | 0.3 | 0.1 | 0.1 | 3.2 |
| Transportation services | 1.4 | 0.2 | 0.6 | 0.3 | -0.6 | -0.3 | 0.3 | 2.9 |
| Medical care services | 0.3 | 0.6 | 0.0 | 0.0 | 0.5 | -0.1 | 0.6 | 2.7 |
The BLS releases inflation data around the middle of the month, covering consumer prices surveyed up to the previous month. The Consumer Price Index (CPI) for August and the latest annual period will be made public on September 11, 2026.
The CPI data are also used to calculate inflation rates and power this site’s U.S. Inflation Calculator, which displays the cumulative inflation and the change in the buying power of the U.S. dollar over time.
