Annual Inflation in the US Declined for Two Consecutive Months: Dropped to 3.4 Percent in July

Annual inflation in the US fell to 3.4 percent in July, aligning with market expectations, while the monthly consumer price index rose by 0.1 percent.

The unadjusted Consumer Price Index (CPI) announced in the US rose by 3.4 percent on an annual basis during the July 2026 period. According to data shared by Wu Blockchain, this rate remained below the June level of 3.5 percent. Thus, annual inflation in the US has declined for the second consecutive month.

July data came in line with market expectations. On a monthly basis, CPI increased by 0.1 percent; it had decreased by 0.4 percent in June. The decline in June was recorded as the first monthly drop seen since May 2020. The data shows that after annual inflation dropped to 2.4 percent in January and February, it rose to 3.3 percent in March, 3.8 percent in April, and 4.2 percent in May. The rate then fell to 3.5 percent in June and 3.4 percent in July.

Annual inflation in the US declined for two consecutive months

The return of the monthly movement to positive territory showed that prices increased in July compared to the previous month, albeit limitedly. However, the decline in the annual rate for two months revealed that the rate of increase in consumer prices slowed down after the May peak. The 3.4 percent rate in July remained 0.8 points below the 4.2 percent level recorded in May.

The data revealed that US inflation displayed a different outlook in monthly and annual measurements. While the monthly index turned positive following the decline in June, annual inflation continued to retreat. The announced figures confirmed that July inflation did not deviate from market estimates.