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Story · United States · 12 Aug 2026

U.S. consumer prices rose 0.1% in July

U.S. consumer prices rose 0.1% in July, while annual CPI inflation was 3.4%.

Inflation
Relevance date 12 Aug 2026, 11:51Updated 30 Aug 2026, 05:34Exam relevance 93/100
A shopper placing groceries on a supermarket checkout counter

Verified sources

Check the original evidence before reading the explanation.

Primary sourceU.S. Bureau of Labor Statistics →CPI for all items increases 0.1% in July; shelter rises
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0.1%

Monthly CPI change

3.4%

Annual CPI inflation

0.2%

Monthly core CPI change

Exam link: Inflation → real incomes and purchasing power → consumption; policy response depends on the cause

Story toolsReport / correction
Understand the storyExpand

The latest U.S. CPI release showed overall consumer prices rose 0.1% in July. The annual CPI rate was 3.4%, while core CPI rose 0.2% over the month and was 2.5% over the year.

What happened

The U.S. Bureau of Labor Statistics reported that the Consumer Price Index rose 0.1% in July. Over the year, overall CPI was 3.4%; core CPI rose 0.2% over the month and was 2.5% over the year.

Why it matters

CPI is a central measure of inflation. Changes in inflation can affect households' real purchasing power, firms' costs and expectations about the future path of monetary policy.

Economic context

For A-Level Economics, this is current evidence for inflation, aggregate demand and supply, real incomes and monetary policy. Compare the monthly change with the annual rate and distinguish headline inflation from core inflation.

All key dataExpand
Monthly CPI change
0.1%
Annual CPI inflation
3.4%
Monthly core CPI change
0.2%
Annual core CPI inflation
2.5%
Terms explainedExpand

Core inflation

Inflation excluding especially volatile items, commonly food and energy, to show underlying price pressure more clearly.

Use it in an examExpand

Evidence

U.S. consumer prices rose 0.1% in July, while annual CPI inflation was 3.4%.

Explain

CPI is a central measure of inflation. Changes in inflation can affect households' real purchasing power, firms' costs and expectations about the future path of monetary policy.

Evaluate

For A-Level Economics, this is current evidence for inflation, aggregate demand and supply, real incomes and monetary policy. Compare the monthly change with the annual rate and distinguish headline inflation from core inflation.

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