CPI report shows inflation eased in July to a 3.4% annual pace
The CPI report was in line with economists' expectations, marking the second consecutive month with cooler price pressures.
Updated on: August 12, 2026 / 10:01 AM EDT / CBS News
Inflation eased for the second consecutive month, rising at a 3.4% annual pace in July, in line with economists' expectations and a signal that some consumer price pressures may be easing.
Economists polled by the financial data firm FactSet predicted July inflation rose at an annual rate of 3.4%.
The CPI, a basket of goods and services typically bought by consumers, tracks changes in prices over time.
Core CPI, which excludes the more volatile energy and food categories, also slowed in July, rising at an annual rate of 2.5%, down from 2.6% in June.
Inflation has eased since hitting a three-year high of 4.2% in May, when oil prices surged, sending gasoline costs soaring. Still, the inflation rate remains well above its pre-war level of 2.4% in February . Inflation also continues to outpace wage growth, which grew at an annual rate of 3.2% in July.