FX.co ★ US Core Inflation Matches Forecasts at 2.5%

The US core inflation rate, which excludes volatile food and energy prices, eased for a second consecutive month to 2.5% in July 2026—the lowest level in five months and in line with market expectations. The key shelter index rose 3.2% over the past year, slightly below June’s 3.3% increase. Other categories also showed slower price growth, including airline fares (+25.5% vs. 26.5% previously), medical care (+1.7% vs. 2%), recreation (+2.6% vs. 2.8%), and household furnishings and operations (+2.2% vs. 2.5%). On a monthly basis, core consumer prices increased 0.2% in July, following no change in the prior month and matching consensus forecasts.