WASHINGTON, D.C. — Today, the Bureau of Labor Statistics announced that inflation, as measured by the consumer price index (CPI) on all items, increased by 3.4% for the 12 months ending in July, down from last month’s 3.5% reading. From June to July, the inflation rate increased 0.1% after falling 0.4% in June.

Core inflation, which excludes volatile energy and food prices, remained steady at 0.2% in July and increased at a pace of 2.5% year-over-year in July—also down from 2.6% in June. 

Energy prices decreased 1.5%, and gasoline prices fell 2.9% last month. Prices on appliances also decreased by 1.0%. Meat and milk prices, however, increased 5.4% and 5.1%, respectively, in July.

Real average hourly earnings for all private-sector workers decreased in July, down 0.2% over the past year.

Patrice Onwuka, vice president for economic policy at Independent Women, issued the following statement:

“This report is good news. For families, price declines in grocery store items and gasoline are releasing financial pressure on household budgets. 

“There’s even better news during this back-to-school shopping season: prices on toddlers’ apparel, girls’ apparel, and kids’ shoes are all down from this time last year. Meanwhile, school supplies have risen only modestly. These are real savings for families grappling with affordability.” 

“For another month, the headline inflation rate and underlying inflation gauges have slowed, giving us confidence that the springtime energy-driven spike has ended and that prices across the economy are moderating or falling. The economy’s resilience despite energy price turbulence from the Iran conflict means that prices would likely be even lower but for geopolitics. Deregulation and tax cuts for households and businesses work to bolster growth and production, which bring down prices.”

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