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

The BLS reported August 12 that annual CPI inflation eased to 3.4% in July 2026 from 3.5% in June, with monthly prices rising just 0.1% — below expectations. The print followed weak jobs data that had already cast doubt on a Fed rate hike. Cooler inflation makes further tightening harder to justify on price grounds alone, though oil-driven risks remain.