Inflation
US inflation is 3.5% in July 2026
Consumer prices were 3.5% higher than a year earlier — the most recent CPI print, published about two weeks after the month ends. Stripping out food and energy, core inflation is 2.8%. The fastest-rising category is airline fares at 29.4%; the weakest is medical goods at -2.7%.
What's driving inflation
Percentage points of headline CPI, by categoryEach bar splits that month's headline inflation into percentage points contributed by each group — its share of household spending multiplied by its own price change. The dot marks the headline rate; "Other" is the small gap left by using a fixed annual weighting.
Every CPI category, month by month
Year-over-year change| Category | Dec 23 | Jun 24 | Dec 24 | Jun 25 | Jan 26 | Jul 26 | Now | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Core services61.5% | 6 | 6 | 6 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 3 | 3 | 3 | 3 | 3 | 3 | 4 | 4 | 3 | 3 | +3.4% |
| Shelter36.2% | 8 | 7 | 7 | 7 | 7 | 6 | 6 | 6 | 6 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 3 | 3 | 3 | 3 | 3 | 4 | 4 | 3 | 3 | +3.4% |
| Owners' equivalent rent26.7% | 8 | 7 | 7 | 7 | 7 | 6 | 6 | 6 | 6 | 6 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 3 | 3 | 4 | 4 | 4 | 4 | +3.5% |
| Core goods18.6% | 1 | 0 | -0 | 0 | 0 | 0 | -0 | -0 | -1 | -1 | -2 | -2 | -2 | -2 | -1 | -1 | -1 | -1 | -0 | -0 | -0 | 0 | 0 | 1 | 1 | 1 | 2 | 2 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | +1.0% |
| Food13.6% | 5 | 4 | 4 | 3 | 3 | 3 | 3 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | +3.1% |
| Groceries8.1% | 4 | 3 | 2 | 2 | 2 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 2 | 3 | 3 | 3 | 2 | 3 | 3 | 3 | 3 | +2.6% |
| Rent of primary residence7.6% | 8 | 8 | 7 | 7 | 7 | 6 | 6 | 6 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | +3.1% |
| Medical services6.5% | -1 | -2 | -3 | -2 | -1 | -1 | 1 | 1 | 2 | 3 | 3 | 3 | 3 | 3 | 4 | 4 | 4 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 3 | 3 | +3.5% |
| Transportation services6.4% | 9 | 10 | 9 | 9 | 10 | 10 | 10 | 10 | 11 | 11 | 10 | 9 | 9 | 8 | 9 | 8 | 7 | 7 | 8 | 6 | 3 | 2 | 3 | 3 | 4 | 4 | 3 | 2 | 2 | 3 | 2 | 3 | 4 | 4 | 4 | 4 | +3.5% |
| Energy6.4% | -12 | -4 | -1 | -4 | -5 | -2 | -4 | -2 | 2 | 2 | 4 | 1 | 1 | -4 | -7 | -5 | -3 | -0 | 1 | -0 | -3 | -4 | -3 | -1 | -1 | 0 | 3 | 4 | 5 | 1 | 0 | 11 | 17 | 22 | 16 | 14 | +13.7% |
| Restaurants5.5% | 7 | 7 | 6 | 5 | 5 | 5 | 5 | 5 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 3 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | +3.7% |
| New vehicles3.7% | 4 | 3 | 3 | 2 | 1 | 1 | 1 | 0 | -0 | -0 | -1 | -1 | -1 | -1 | -1 | -1 | -1 | -0 | -0 | -0 | -0 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | +0.5% |
| Gasoline3.1% | -20 | -3 | 3 | -5 | -9 | -2 | -6 | -4 | 1 | 1 | 2 | -2 | -2 | -10 | -15 | -12 | -8 | -3 | -0 | -3 | -10 | -12 | -12 | -8 | -9 | -7 | -0 | 1 | -3 | -7 | -6 | 19 | 28 | 40 | 27 | 25 | +24.6% |
| Electricity2.5% | 3 | 2 | 3 | 2 | 3 | 3 | 4 | 4 | 5 | 5 | 6 | 4 | 5 | 4 | 4 | 5 | 3 | 3 | 2 | 2 | 3 | 4 | 4 | 6 | 6 | 6 | 5 | 7 | 7 | 7 | 6 | 6 | 7 | 7 | 5 | 4 | +4.2% |
| Apparel2.5% | 3 | 3 | 2 | 3 | 1 | 1 | 0 | 0 | 0 | 1 | 1 | 1 | 0 | 0 | 2 | 0 | 1 | 1 | 1 | 1 | 0 | -1 | -1 | -1 | -0 | 0 | -0 | 0 | 0 | 1 | 3 | 4 | 4 | 4 | 4 | 4 | +4.0% |
| Used cars & trucks2.0% | -6 | -7 | -8 | -7 | -4 | -1 | -4 | -1 | -1 | -6 | -9 | -10 | -10 | -9 | -6 | -5 | -5 | -5 | 1 | 1 | 1 | 2 | 2 | 3 | 5 | 6 | 5 | 4 | 2 | -2 | -3 | -3 | -3 | -2 | -2 | -2 | -1.9% |
| Tuition & childcare2.0% | 4 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 4 | 4 | 4 | 4 | 4 | 3 | 4 | 4 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | +3.1% |
| Medical goods1.5% | 4 | 4 | 4 | 5 | 5 | 5 | 3 | 3 | 3 | 2 | 3 | 3 | 3 | 2 | 2 | 1 | 0 | 0 | 2 | 2 | 1 | 1 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 0 | -1 | -0 | -1 | -2 | -3 | -2.7% |
| Airline fares0.8% | -18 | -13 | -13 | -13 | -12 | -10 | -7 | -6 | -7 | -6 | -6 | -5 | -3 | -1 | 2 | 4 | 5 | 8 | 7 | -1 | -5 | -8 | -7 | -3 | 1 | 3 | 3 | -5 | -2 | 3 | 4 | 10 | 18 | 24 | 27 | 29 | +29.4% |
| Natural gas0.7% | -14 | -16 | -20 | -16 | -10 | -14 | -18 | -9 | -3 | -2 | 0 | 4 | 1 | -0 | 2 | 2 | 2 | 5 | 5 | 6 | 9 | 16 | 15 | 14 | 14 | 14 | 12 | 10 | 13 | 12 | 13 | 10 | 6 | 2 | 3 | 4 | +3.7% |
Each cell is that category's change against the same month a year earlier. The percentage beside each category name is its weight in the CPI — how much of a typical household's spending it represents.
About this data
CPI comes from the Bureau of Labor Statistics via FRED and is published monthly, about two weeks after the month ends — so the headline rate above describes July 2026, not today. Category weights are BLS relative-importance figures, which BLS re-weights each January; that is why the contribution bars carry a small "Other" residual instead of being forced to add up exactly. Breakeven rates are daily and come from the gap between nominal Treasury yields and TIPS — they are what the bond market is pricing, not a forecast we make. Core PCE is the measure the Federal Reserve actually targets; it usually runs a few tenths below CPI because it accounts for people substituting between goods as prices change.
Related: Inflation calculator · Mortgage rates · Macro dashboard
FAQ#
- What is the current US inflation rate?
- 3.5% — consumer prices in July 2026 were that much higher than a year earlier, measured by the Consumer Price Index. Core inflation, which excludes volatile food and energy prices, is 2.8%.
- Why is core inflation different from headline inflation?
- Core inflation excludes food and energy, whose prices swing sharply for reasons unrelated to the broader economy — a cold snap or an oil shock. Economists watch core because it is a better guide to where inflation is heading; households experience headline, because they buy groceries and gasoline.
- What do breakeven inflation rates mean?
- The gap between a regular Treasury bond's yield and an inflation-protected one of the same maturity — what the bond market expects average inflation to be over that period. The 10-year breakeven is 2.37%. Unlike CPI it updates every trading day, which makes it the timeliest inflation signal available.
- Which category has the biggest effect on inflation?
- Shelter — rent and the equivalent cost of living in a home you own — is about 36% of the CPI, far more than any other category. Because it is measured with a long lag, changes in market rents take roughly a year to show up in official inflation.