The Bureau of Labor Statistics reported on August 12 that the Consumer Price Index rose 3.4% year-over-year in July 2026, ticking down from 3.5% in June. It’s the second straight month of deceleration, and it landed right on market expectations.
The monthly picture tells a more nuanced story. CPI edged up 0.1% from June, a rebound from the prior month’s 0.4% decline. Shelter costs accounted for roughly two-thirds of July’s monthly gain.
The numbers behind the number
Shelter rose 0.1% on the month. Housing costs make up about a third of the overall index.
Energy prices fell 1.5% in July, providing a meaningful drag on the headline number.
