The annual inflation rate in the US is expected to slow for a second consecutive month to 3.4% in July 2026, from 3.5% in June, easing further from the 2023 high of 4.2% reached in May. On a monthly basis, the CPI is forecast to rise 0.1%, rebounding from a 0.4% decline in June, which marked the first monthly drop since May 2020. Gasoline prices are expected to have fallen nearly 3%, while airfares and jet fuel prices are also likely to have declined. New and used car prices, meanwhile, could see a slight uptick. Core consumer prices are expected to rise 0.2%, following a flat reading in June, while the annual core inflation rate is seen easing to 2.5% from 2.6% in the previous month. That would mark the smallest annual increase since February. Overall, the CPI report is likely to point to a further cooling in energy-related price pressures that intensified in the months immediately following the start of the US war with Iran.