National Inflation Moderates in July, but Remains Above Federal Reserve Target
In July, inflation showed a modest increase of 0.1% nationally, cooling from previous months as energy prices fell for the second consecutive month. However, overall consumer prices are still up 3.4% year-over-year, remaining above the Federal Reserve's 2% target. While…
Nashville, TN, August 12, 2026 —
National inflation experienced a modest increase of 0.1% in July, indicating a cooling trend from previous months, primarily driven by a decline in energy prices. This marks the second consecutive month of falling energy costs. Despite this moderation, overall consumer prices have risen by 3.4% year-over-year, continuing to stay above the Federal Reserve’s target inflation rate of 2%.
The energy sector saw a decrease of 1.5% in July. However, when viewed over a longer period, energy prices have surged by 15.7% in the past year. Alongside energy, the costs of food and shelter also remain at elevated levels, contributing to the persistent upward pressure on consumer prices.
In the face of these inflationary challenges, real wages have shown a minimal decline of 0.1% over the last year. This suggests a slight erosion in purchasing power for consumers, though the decrease is very small.
The Federal Reserve continues to monitor these economic indicators closely as it aims to bring inflation back down to its target while supporting economic growth.
Story summarized from the original created by Justin Boggs on www.newschannel5.com, see more information here.
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