FX.co ★ US Core CPI Eases to 2.5% in July, Marking Continued Cooling in Underlying Inflation

The United States’ core Consumer Price Index (CPI) slowed to 2.5% year-over-year in July 2026, edging down from 2.6% in June, according to data updated on 12 August 2026. Core CPI excludes volatile food and energy components and is closely watched by markets as a gauge of underlying inflation trends.

The latest reading reinforces a gradual cooling pattern in core inflation, with July’s figure comparing the price level to the same month a year earlier, while June’s 2.6% represented a similar year-over-year comparison. The modest deceleration suggests that underlying price pressures continue to ease, a development likely to factor into expectations for future monetary policy and interest rate trajectories in the United States.

Although the change from June to July is incremental, the direction of travel points toward a more stable inflation backdrop. Market participants and policymakers will be monitoring subsequent releases to assess whether the current disinflation trend in core prices proves durable through the remainder of 2026.