CPI report shows inflation eased in July to a 3.4% annual pace
Updated on: August 12, 2026 / 2:20 PM 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.
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Other than gasoline, prices for many categories — including food to shelter — are easing, which should keep the Federal Reserve on pause with interest rate hikes, Long said. "This gives new Fed Chair Kevin Warsh some cover to wait and see what happens this fall before he has to act," she said in an email.
