Inflation Cooled Slightly in July, Good News for Borrowers and Savers

U.S. inflation — the rate at which prices rise — fell to 3.4 percent for the year ending July 2026, down from 3.5 percent in June, the Bureau of Labor Statistics reported August 12. Stocks rose August 13 as investors bet the Federal Reserve would hold off on raising interest rates. The Fed's separate inflation gauge still runs above 3 percent, so a rate hike remains possible.