Perspectives Chartbook July 2026

Perspectives – August 18, 2026

U.S. inflation moderated more than expected in June, with headline CPI falling 0.4% month-over-month and slowing to 3.5% year-over-year, down from 4.2% in May. The improvement was driven primarily by a sharp 5.7% decline in energy prices, while Core CPI eased to 2.6% year-over-year and was unchanged for the month. The data provided some relief for the Federal Reserve, but the improvement may prove temporary. Renewed conflict between the U.S. and Iran has pushed oil and gasoline prices higher in July, creating renewed inflationary pressure. Economists expect higher energy costs to eventually flow through to transportation and other core prices.