July Inflation Eases To 3.4% As Fed Weighs September Rate Move
U.S. consumer inflation slowed to a 3.4% annual rate in July 2026, matching economists' expectations and leaving policymakers weighing whether to change interest rates at the Federal Reserve's September meeting.[1]
Average U.S. gasoline prices in July were $4.06 per gallon, about 10 cents cheaper than in June, even as Brent crude climbed above $100 per barrel amid Iran-related tensions. The July jobs report showed a net loss of 23,000 jobs versus forecasts for a 95,000 gain, a shock that has helped push many economists to expect the Fed will hold rates in September.[1]
Brent crude climbed from about $71 to above $100 per barrel during July amid Iran-related tensions. That rise would normally lift consumer fuel costs, but gasoline prices ticked down slightly in July, muting the pass-through to the CPI.
Cooling inflation and the unexpected payrolls weakness have reduced near-term pressure on the Fed to tighten further, leaving markets and policymakers focused on upcoming inflation and jobs data for clues ahead of the September meeting.[1]
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📌 Key Facts
- July 2026 CPI rose at a 3.4% annual pace, matching economists' expectations.
- Brent crude climbed from about $71 to above $100 per barrel during July amid Iran-related tensions.
- Average U.S. gasoline prices in July were $4.06 per gallon, about 10 cents cheaper than June.
- The July jobs report showed a net loss of 23,000 jobs versus a forecast for 95,000 gains.
- Many economists now expect the Federal Reserve to hold interest rates steady at its September meeting.
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