July 2026 CPI report: Inflation remained stubborn

The government released the consumer price index for July as Americans contend with a tight labor market and elevated energy costs.

Inflation as measured by the consumer price index rose 0.1% from June to July, the Bureau of Labor Statistics said Wednesday, showing that costs broadly remained elevated for consumers amid volatile energy prices.

From a year ago, inflation dropped slightly to 3.4% from 3.5%.

But in a troubling sign for consumers, it remains above the rate of wage growth, which as of last month was pacing at 3.2%, according to the BLS. Average hourly earnings slipped 0.2% from a year earlier, as well, the agency said Wednesday.

Inflation has been wiping out wage gains for the past four months, Heather Long, chief economist at Navy Federal Credit Union, wrote on X.

“For middle-income and lower-income Americans, this is the key issue,” Long wrote. “There will likely be some belt-tightening ahead.”