U.S. Inflation Cooled to 3.4% Year-Over-Year in July as Monthly CPI Rose Just 0.1%

The BLS reported August 12 that CPI-U rose 0.1% monthly in July 2026 after June's 0.4% drop. Year-over-year inflation eased to 3.4% from 3.5%. Shelter costs kept rising. At 3.4%, inflation still sits well above the Fed's 2% target — enough to justify a hold, not a pivot. The next CPI print lands September 11, five days before the FOMC meets.