Released on August 12, the July 2026 U.S. CPI report showed inflation somewhat decreasing but still far over the Federal Reserve's 2% target. Headline CPI increased 3.4% year-over-year, down from 3.5% in June, and the monthly gain was a modest 0.1% following a flat reading the previous month. Excluding food and energy, core CPI dropped to 2.5% year over year from 2.6%, with a 0.2% monthly rise closely matching market predictions of 3.4% headline and 2.5% core. The data generally showed ongoing but decreasing inflationary pressures with no major changes from past months. The study confirms the Fed's hesitant, data-dependent position; future policy decisions will depend on ongoing improvement in core services and housing components.