US inflation eases to 3.4% as food costs cool

The annual inflation rate in the United States edged down to 3.4 percent in July 2026 from 3.5 percent in June, the Bureau of Labor Statistics reported on August 12, 2026.

Month-on-month, consumer prices rose 0.1 percent, lifted by higher housing costs.

Food price increases slowed: they rose only slightly in July and at a slower pace than in June. Energy costs declined over the month.

The core inflation rate, which strips out volatile food and energy prices, climbed 0.2 percent in July after holding steady in June. Medical care and airline fares became more expensive, while car insurance costs fell.

Shelter costs, a major component of the consumer price index, can drive the headline figure even with modest rent changes because housing represents a large share of household spending.

The Bureau of Labor Statistics plans to release the next monthly inflation report in September, providing a further check on whether the cooling trend persists.