Key facts
- US energy inflation decreased to 14.7% year-over-year in July 2026.
- This marks the softest energy inflation rate since March 2026.
- Monthly energy prices fell by 1.5% in July 2026.
- This follows a 5.7% decline in energy prices in June 2026.
- Prices for gasoline and fuel oil slowed their year-over-year increases.
- Prices for piped gas service and electricity rose faster year-over-year.
US energy inflation saw a notable moderation in July 2026, reaching 14.7% year-over-year, its lowest point since March of that year. This figure represents a decrease from the 15.7% recorded in June 2026. The decline was primarily driven by a 1.5% drop in monthly energy prices in July, following a significant 5.7% decrease in the preceding month.
While prices for gasoline and fuel oil experienced slower year-over-year increases in July compared to June, the costs for piped gas service and electricity rose at a faster annual pace. Energy commodities constitute over 9% of the overall consumer price index.
Market participants are closely watching the official Consumer Price Index release to confirm these trends and assess their impact on overall inflation. The Federal Reserve's reaction, particularly any statements from Chair Jerome H. Powell, will be crucial for understanding future monetary policy.