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CPI Rises 0.1% in July, Annual Inflation 3.4%

8/13/2026

25 2 Full Breakdown

Summary

BLS Reports July Inflation

Bureau of Labor Statistics said the CPI rose 0.1% in July, with annual inflation at 3.4%.
Core CPI increased 0.2% in July, a 2.5% gain from a year earlier.
Shelter prices rose 0.1% in July, two-thirds of the CPI gain, and were 3.2% higher year-over-year.
Energy prices fell 1.5% in July, with gasoline down 2.9% still 24.6% above July 2025.
Airline fares rose 2.2% in July, 25.5% above a year earlier.

Summary

Fed Holds Rates

The Federal Reserve (Fed) kept rates unchanged in its July meeting with a 9-3 vote, marking the first dissent by three board members in a decade.
Spot gold rose 1 % to $4,409.35 an ounce, reaching a more-than-two-month high as the U.S. dollar index slipped.
U.S. equities climbed after the CPI report, with the Dow up 50 points (0.1 %), the S&P 500 up 0.3 % and the Nasdaq up 0.6 %.

History

Historical Context

After double-digit inflation surged to 14.8 % in March 1980, Paul Volcker, appointed Fed chair in 1979, lifted the federal funds rate to a 20 % peak in June 1981 while President Ronald Reagan pushed the 1981 Economic Recovery Tax Act. The sharp tightening sparked the 1981-82 recession, and today’s modest CPI rise and a Fed vote to hold rates echo that Volcker-style caution.

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BLS Reports July Inflation

Bureau of Labor Statistics said the CPI rose 0.1% in July, with annual inflation at 3.4%.
Core CPI increased 0.2% in July, a 2.5% gain from a year earlier.
Shelter prices rose 0.1% in July, two-thirds of the CPI gain, and were 3.2% higher year-over-year.
Energy prices fell 1.5% in July, with gasoline down 2.9% still 24.6% above July 2025.
Airline fares rose 2.2% in July, 25.5% above a year earlier.

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