Foreign Exchange Market Update

August 12, 2026

United States Consumer Prices Inch Up in July, Annual Growth Edges Lower

Consumer prices in the U.S. crept slightly higher in July, according to a closely watched report released by the Labor Department on Wednesday. The report said consumer prices inched up by 0.1% in July after falling by 0.4% in June. The annual rate of growth in consumer prices edged down from 3.5% in June to 3.4% in July.

The Labor Department said shelter prices crept up by 0.1% in July, accounting for roughly two-thirds of the monthly increase. Meanwhile, the report showed an extended pullback in energy prices, which tumbled by 1.5% in July after plunging by 5.7% in June.

Excluding the slump in energy prices and an uptick in food prices, core consumer prices rose by 0.2% in July after coming in unchanged in June. The annual rate of growth of core consumer prices slipped from 2.6% in June to 2.5% in July. The modest monthly increase in core consumer prices reflected higher prices for shelter, medical care, airline fares, communication, education, and recreation, while prices for motor vehicle insurance decreased. 08/12/2026 - 09:56:00 (RTTNews)

Eurozone

Euros traded at 1.1540 against USD at 9:00 AM PST

Consumer price inflation in Italy moderated in July to the lowest level in three months. Consumer price inflation slowed from 3.0% in June to 2.9% in July. The annual price growth in unprocessed food eased from 4.4% to 3.6%, and that in non-regulated energy products softened from 13.3% to 11.4%.

On the other hand, inflation in regulated energy products accelerated from 9.2% to 14.8%, and inflation in transport-related services rose from 1.1% to 1.6%. Excluding energy and unprocessed food, core inflation remained stable at 1.6%.

Monthly, consumer prices moved up 0.3% versus an increase of 0.2% seen in the preliminary report. The EU measure of inflation was 2.9% in July, down from 3.0% in June. Monthly, the harmonized index of consumer prices (HICP) decreased 1.0%. 08/12/2026 - 04:33:00 (RTTNews)

Germany's inflation accelerated in July as the end of the government's fuel tax pushed up energy prices. Consumer prices grew 2.8% year-on-year in July, faster than the 2.3% increase seen in June. The rate was the highest since April when inflation stood at 2.9%.

Likewise, EU harmonized inflation accelerated from 2.4% in June to a three-month high of 2.8% in July. Month-on-month, the consumer price index (CPI) moved up 0.8%, in contrast to the 0.3% fall in June. The harmonized index of consumer prices (HICP) rebounded 0.9%, following a 0.2% fall in June. This was the first increase in three months.

Motor fuel prices increased appreciably due to the discontinuation of the government fuel discount on June 30, which coincided with the increase in the price of oil because of the ongoing Iran war. The prices of energy products were 8.3% higher than in July 2025. Core inflation that excludes food and energy prices eased marginally from 2.5% in June to 2.4%. 08/12/2026 - 03:26:00 (RTTNews)