# July 2026 Inflation Data Revealed

Rising energy prices pushed inflation higher.

- **Source:** [US Top News and Analysis](https://brifing.si/source/635540e9-943e-450d-ae52-ae0bfe3b67eb)
- **Published:** 2026-08-12
- **Topic:** [Finance](https://brifing.si/c/finance)
- **Original article:** <https://www.cnbc.com/2026/08/12/inflation-breakdown-for-july-2026-cpi-in-one-chart.html>
- **On Brifing:** https://brifing.si/s/742e34b2-01f2-46c4-83a1-c80dbe31a81b

## Inflation Rose in July

Consumer prices increased in July, reversing the decline seen in June. However, inflation is broadly moderating. Energy prices, on the other hand, rose sharply compared to a year ago. The Consumer Price Index (CPI) increased by 3.4% year-over-year. This marks a slight decline from the 3.5% rise in June.

## Surge in Energy Prices

Energy prices rose by 14.7% year-over-year by the end of July. The ongoing conflict between the U.S. and Iran contributed to this increase. Gasoline prices surged by 24.6% annually, while fuel oil prices jumped by 39.1%. According to AAA, the national average price of gasoline reached $4.04 per gallon, up by about 90 cents from a year ago.

## Increase in Airline Fares

Airline fares also rose by 25.5% over the past 12 months, according to CPI data. Economists noted that the oil shock did not significantly pressure grocery prices, which have been a pain point for many U.S. households. Food prices increased by 3% over the last year, with food-at-home prices up by 2.7%.

## Mixed Picture in Food Prices

Food prices are generally not too bad, but the picture is mixed. Meat prices rose significantly, while chicken prices saw a slight decline. Egg prices finally dropped, but lettuce prices are now problematic. Ongoing cyclospora outbreaks have dampened demand for lettuce, impacting the fruits and vegetables index.

## Core Inflation Data

Core CPI, excluding food and energy, rose by 2.5% year-over-year. Indexes for new vehicles, apparel, and shelter also saw modest increases. Mark Zandi, chief economist at Moody's, stated, 'Affordability is still a serious issue, but it’s much better than it has been.'

## Fed in Wait-and-See Mode

The inflation rate is one of the key economic indicators the Federal Reserve uses to guide interest rate decisions. Last month, the central bank voted to keep the benchmark borrowing rate in a range of 3.5%-3.75%, but policymakers hinted at a possible increase soon. With inflation remaining above the Fed's 2% target, a September rate hike is on the table.

## Future of Energy Prices

If energy prices do not rise again, inflation could approach the Fed's target. However, experts suggest that an October rate hike is more likely. Karen Manna, fixed income investment director at Federated Hermes, noted, 'The Fed is in wait-and-see mode for now.'

## Economic Impact of Inflation

With inflation above target for over five years, policymakers are waiting for a clear and lasting trend. Fluctuations in energy prices and global conflicts will continue to play a decisive role in inflation. The Fed's next steps will depend on the trajectory of inflation in the coming months.

## Sources covering this story

- https://www.cnbc.com/2026/08/12/inflation-breakdown-for-july-2026-cpi-in-one-chart.html — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._