FX.co ★ U.S. CPI Edges Back Into Positive Territory in July After June Deflationary Dip

The U.S. Consumer Price Index (CPI) moved back into positive territory in July 2026, easing concerns over a potential deflationary trend. Month-over-month, CPI rose 0.1% in July, according to data updated on 12 August 2026. This follows a -0.4% month-over-month decline in June 2026.

The July reading marks a modest but notable turnaround from June’s negative print, which had highlighted a brief period of price contraction. On a month-over-month basis, the “actual” figure compares July’s price changes to June, while the “previous” reading reflects June’s movement versus May.

While the 0.1% increase suggests price pressures remain subdued, the shift away from June’s decline indicates that consumer prices are stabilizing rather than entering a sustained deflationary phase. Investors and policymakers will now watch upcoming data closely to gauge whether July’s uptick signals the start of a firmer inflation trend or merely a temporary pause in recent softness in prices.