The annual inflation rate in the US slowed for a second consecutive month to 3.4% in July 2026, from 3.5% in June, in line with market expectations and easing further from the 2023 high of 4.2% reached in May. On a monthly basis, the CPI rose 0.1%, rebounding from a 0.4% decline in June, which marked the first monthly drop since May 2020, also as expected. The index for shelter rose 0.1%, accounting for roughly two-thirds of the monthly all items increase. In contrast, energy prices were down 1.5%. Core consumer prices went up 0.2%, following a flat reading in June, while the annual core inflation rate eased to 2.5% from 2.6% in the previous month, matching forecasts.