U.S. July 2026 CPI Edges Up as Payrolls Fall and Producer Prices Stall
U.S. July 2026 CPI rose 0.1%, payrolls fell 23,000 and unemployment held at 4.1%, while producer prices were flat and up 4.7% yearly, latest BLS data showed.
Summary
The U.S. Bureau of Labor Statistics dashboard published Aug. 14, 2026, showed mixed July inflation and labor data. The Aug. 13 Producer Price Index report said final-demand prices were unchanged monthly as services rose 0.2% and goods fell 0.7%, while prices increased 4.7% over 12 months. On Aug. 12, the Consumer Price Index rose 0.1%, led partly by shelter, while real average hourly earnings fell 0.1%. Average hourly earnings increased a preliminary $0.02.
The Aug. 7 employment report showed preliminary payrolls fell 23,000 and unemployment changed little at 4.1%. The Aug. 6 report showed second-quarter productivity increased at a 1.4% annual rate and unit labor costs rose 1.3%; the Employment Cost Index gained 0.9% during the quarter. June import prices rose 0.3%, while export prices fell 0.6%. The figures present investors, employers and households with easing monthly price pressure but weaker employment and purchasing-power signals; payroll and hourly earnings estimates remain preliminary.
Positives
- July consumer prices increased only 0.1%, although shelter costs rose.
- Final-demand producer prices were unchanged in July as a 0.7% goods decline offset a 0.2% services increase.
- Second-quarter productivity increased at a 1.4% annual rate.
- Unemployment changed little at 4.1% in July despite the payroll decline.
- Preliminary average hourly earnings increased $0.02 in July.
Risks & concerns
- Preliminary payroll employment fell by 23,000 in July.
- Real average hourly earnings decreased 0.1% in July, signaling reduced purchasing power.
- Final-demand producer prices remained 4.7% above their year-earlier level.
- Second-quarter unit labor costs increased at a 1.3% annual rate.
- June export prices fell 0.6%, while import prices increased 0.3%.
- The Employment Cost Index rose 0.9% in the second quarter, indicating continued employer cost pressure.
