Inflation cooled in July but remained elevated as Fed weighs rate hikes

This story about the July 2026 CPI inflation report will be updated with further details.

Inflation cooled slightly in July even as the pace of consumer price growth from a year ago remains elevated, as the Federal Reserve considers a potential interest rate hike next month.

The Bureau of Labor Statistics (BLS) said on Wednesday that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – increased 0.1% on a monthly basis and is up 3.4% from a year ago.

Those figures were in line with the estimates of economists polled by LSEG. The monthly data follows a reading...