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Economy· August 17, 2026 at 05:38 p.m.

Higher Gas Prices Contribute to July Inflation Increase, Falling Short of 2026 Rate Hike Trigger

Higher Gas Prices Contribute to July Inflation Increase, Falling Short of 2026 Rate Hike Trigger

Key takeaways

  • Inflation rose 0.5% in July
  • Gas prices increased by 7.5%
  • Overall inflation remains below the Federal Reserve's target

Increased gas prices contributed to a rise in inflation rates during July, according to a report by Morningstar. However, the increase did not reach levels that would trigger an interest rate hike in 2026. The Consumer Price Index (CPI) rose 0.5% in July, following a 1.3% increase in June.

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