US CPI moderates to 3.4 per cent YoY in July as lower energy prices offset shelter, food pressures
New Delhi, August 12
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
Reader Comments
The fact that shelter costs are still up 3.2% YoY tells you the housing crisis isn't going away. Gas prices might be down month-on-month, but 24.6% higher than last year is brutal for families who need to commute. This is not the "mission accomplished" moment some are painting.
Interesting how food-away-from-home prices are rising while groceries are getting slightly cheaper. This just shows the average American is still stressed about eating out or ordering in. The global economy is so interconnected; if the US sneezes, we catch a cold in our markets too. Hope this trend continues.
Core CPI at 2.5% – that's basically at the Fed's target. This is a good sign. But let's not forget, these are American figures. For Indian IT professionals and students sending money back home, a stable dollar and lower US inflation actually means better purchasing power for their families in rupees. 📈
Every time US CPI data comes out, our Sensex and Nifty react within minutes. It's a reminder of how much our economy is tied to the US. I just wish our policymakers would use this breathing room to stabilize the rupee and boost our manufacturing exports instead of just celebrating external factors.
A 0.1% MoM increase after a 0.4% decline isn't really "moderation" – it's just volatility. The real story is shelter costs refusing to cool down. Until housing gets sorted, ordinary Americans will keep feeling the pinch regardless of what the headline number says. But progress is progress, I guess.
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