U.S. consumer prices rose 0.1% on a seasonally adjusted basis in July, following a 0.4% decline in June, the Bureau of Labor Statistics said. Over the 12 months ended in July, the Consumer Price Index for All Urban Consumers increased 3.4%, compared with 3.5% over the 12 months ended in June.
The CPI measure excluding food and energy rose 0.2% in July after being unchanged in June. Over 12 months, that index increased 2.5%, down from 2.6% in the 12 months ended in June.
Shelter accounted for most of July’s increase
The shelter index rose 0.1% in July and accounted for roughly two-thirds of the overall monthly CPI increase. Rent and owners’ equivalent rent each rose 0.3%, while lodging away from home fell 2.8%.
Over the past 12 months, shelter prices increased 3.2%. Medical care rose 0.4% during July, airline fares increased 2.2%, and the indexes for communication, education and recreation also rose. Prescription drugs fell 0.8%, while motor vehicle insurance declined 0.3% after falling 2.0% in June.
Energy fell during July but was higher over the year
The energy index declined 1.5% in July, following a 5.7% decrease in June. Gasoline fell 2.9% for the month, while natural gas rose 0.7% and electricity increased 0.1%.
The year-over-year comparison moved differently. Energy prices were 14.7% higher over the 12 months ended in July, with gasoline up 24.6%, fuel oil up 39.1%, electricity up 4.2% and natural gas up 4.3%.
These figures describe different comparison periods: the monthly energy decline reflects July’s movement, while the 12-month measure compares July prices with those a year earlier.
Food prices rose modestly
The overall food index increased 0.1% in July and 3.0% over 12 months. Grocery prices, measured by food at home, declined 0.1% for the month. Meats, poultry, fish and eggs fell 0.7%; fruits and vegetables and dairy products each declined 0.1%. Nonalcoholic beverages rose 0.9%, and cereals and bakery products increased 0.2%.
Food away from home rose 0.3% in July and 3.4% over 12 months. Limited-service meals increased 0.4% during the month, compared with a 0.2% rise for full-service meals.
The BLS is scheduled to publish its August 2026 CPI report on September 11, 2026, at 8:30 a.m. Eastern Time.
This article is for general information and educational purposes only. It is not financial, investment, tax or legal advice and does not consider your objectives, financial situation or risk tolerance.