The 12-month rate of inflation as of July 2026 is 3.4%, according to the Bureau of Labor Statistics (BLS). Energy inflation spiked to 14.7% as the status of the Strait of Hormuz remains uncertain. Core inflation, which excludes energy and food, was 2.5%.

For the rest of 2026, models from forecasting companies like Trading Economics anticipate an inflation rate of about 3.5% through the middle of the year. After that, it may decline to around 3%.

Fed awaits key inflation data before its September decision. Rate hike by September at 45.5% YES, by October at 58.5% YES.

Despite an increase in disposable income, personal consumption expenditures rose just 0.2% last month compared with a 0.4% gain in June.

Annual U.S. inflation unexpectedly held steady in July well above the Federal Reserve's 2% target for the 65th straight month, and the pause in the decline from a recent Iran-war induced peak is likely to add to the central ​bank's tense debate over whether interest rates should be lifted or held steady.

CNN's John Berman called out Rep. Pete Sessions (R-TX) after he claimed President Donald Trump has lowered inflation rates during his second term.