The consumer price index rose by 0.1% in July and was up 0.2% excluding food and energy prices, both as expected.
The year-over-year increase slowed to 3.4% from 3.5% in June, while the core measure was 2.5% year-over-year after a 2.6% rate in the previous month.
Food prices rose by 0.1%, while energy prices declined by 1.5%. Gasoline prices alone were down 2.9%.
Owners' equivalent rents and regular rents were both up 0.3%, accounting for about one-third of the overall gain.
Prices of new vehicles rose by 0.1% after a flat reading in the previous month and used vehicle prices rose by 0.4% after a 0.2% decline.
The US Treasury reported a $432.31 billion budget gap in July, larger than the $291.14 billion deficit reported in July 2025 due to smaller receipts and larger outlays.
The Mortgage Bankers Association reported a 3.6% gain in mortgage applications in the week ended Aug. 7 after a 2.9% drop in the previous week. Refinancing activity and new home applications were both lifted by lower mortgage rates, the first decline in the rates after five consecutive increases.
Total crude oil inventories rose by 11.3 million barrels in the week ended Aug. 7, with commercial oil inventories up 17.4 million barrels and stocks in the US Strategic Petroleum Reserve down 6.1 million barrels. Gasoline inventories declined while distillate inventories were unchanged.